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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: Paul van Wijk who wrote (11438)	8/12/1999 8:20:00 AM
From: Bipin Prasad	Respond to of 19080

from briefing: RHAT & ORCL, Red Hat Inc (RHAT) 52 +38: Investors shouldn't mistake success of the Red Hat IPO today as sign that storm clouds are lifting from the IPO market. While RHAT able to get its deal off above the estimated range, majority of IPOs to hit the market this week have priced in the hole. Even decidedly non-tech video rental chain Blockbuster Inc. (BBI 15 unch) was forced to price its deal below the estimated range. And, while RHAT has soared 271% from its IPO price and 13% from its opening price, BBI hasn't budged. Intraday range on the stock is 15 to 15 1/16. The size of the offering (31 mln shares) one of major reasons BBI shares stuck in cement shoes... Red Hat sold just 6 million in its IPO, in a deal that priced at $14, above the original $10-12 range. While RHAT's numbers are quite impressive relative to the internet junk that has inundated the market, company's impressive debut primarily a function of the magnitude of its cult-like following and seductiveness of its giant-killer story... Red Hat is a developer and distributor of open source software. The company has made a name for itself selling the Linux operating system to consumers who would rather pay for the product than spend up to 36 hours downloading a free copy from the internet. Red Hat's version of Linux accounted for approximately 56% of new license shipments of Linux-based server operating systems in 1998. The company benefits from strategic alliances with Microsoft foes such as Oracle and Netscape (now a subsidiary of AOL). Earlier this week, Oracle introduced the Oracle WebDB 2.0 for Linux, a Linux-based, Web publishing tool for Web developers. Oracle also announced the creation of a business unit dedicated to the development and marketing of Oracle/Linux products... For the qtr ended May 31, company logged revenue of $2.8 mln, an 81% improvement over the yr-ago period. Net loss for qtr was $0.09 a share or $2.1 mln, compared to yr-ago breakeven results. With 66 .6 mln shares outstanding, company carries a market-cap of almost $3.5 bln and a Price/Sales ratio of 290. later, InSook Prasad