Acxiom (ACXM) Message Board

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Technology Stocks : Acxiom (ACXM)

ACXM 48.48

-1.9%

Oct 1 5:00 PM EST

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To: Michael L. Bland who wrote (6)	1/14/1997 7:19:00 PM
From: Mr. Jones	of 92

ACXM was trading at a PE Ratio of 57 prior to the earnings announcement. The earnings, although they equalled estimates from First Call, were only up 36% from last year. I know one quarter doesn't make a trend, but if something is growing at 36% why pay 57 times earnings? That is probably the reason for the drop yesterday. Analysts have come to expect everybodies earnings announcement to blow away estimates (witness the high multiples paid) and when a company only meets expectations there is a swift price correction. Oracle is a good example. Each quarter the price is driven up on unrealistic expectations and then they show their typical 30-40% growth and the stock drops only to start the cycle over again. In the long run ORCL always shows 30-40% price gains each year. Hopefully this is what we can expect from ACXM each year. 30-40% price gains with some wild swings around earnings time. By the way, I think ACXM may still come down a little more in the next couple of weeks, possibly to the 15-16 price range only to start the upward trand again. But then again what do I know. Kevin

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