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

To: Qualified Opinion who wrote (18527)	6/17/2004 6:18:35 PM
From: alydar	Read Replies (2) \| Respond to of 19079

I've come to the conclusion that "the street" looks at Oracle at only a database company and even beating estimates and having the highest operating margin in the companies history has not/did not and will not change that. What most anlaysts seem to miss is that the database is a growth product as a result of the expansion of the internet. Oracle is more than able to and has proven it can hold its own or increase market/mindshare against IBM and Microsoft. So that part of their business is doing well. Then we come to applications. This is the area where the analysts focus much of their attention. The stock will not increase quickly unless there is a jump in application sales. This is a really stupid way to look at enterprise software companies. Applications are starting to be sold on a subscription basis so there will be more discounting on the actual sale but the maitenance/annuity revenue will increase. And, this type of annuity has the highest profit margins. So, we have to ask ourselves, when will "the street" recognize that margins are at all time highs because of the subscription model and stop soley judging the company on application sales which are heavily discounted. Lastly, Oracle wants Peoplesoft not because of their products, employees but for their customers and it also really screws up IBM's efforts in applicaitions. Alydar