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

To: Mark Palmberg who wrote (4053)	12/9/1997 11:11:00 PM
From: Andrew Fenic	Read Replies (2) \| Respond to of 19080

Let me preface this by saying that before this morning's plunge I was not an Oracle stockholder. I am now. This type of firesale is an absolutely CLASSIC investor overreaction to non-news. The bottom line is that Oracle has the preeminent, and some would argue the ONLY, high end database product and the company is growing like a weed. Missing an earnings estimate by 4 pennies due to currency exchange rate problems is hardly a major structural problem. In fact, any smart small investor should immediately realize that with regard to the long term prospects of this issue this news is largely irrelevant. I question the competence of any analyst who downgraded the stock with a simple question: WHY? Growth rate is still excellent and the earnings drop is clearly due to currency issues and not product sales. Nothing has changed. Nothing! And let's look at the business for a moment. ORCL is years ahead of its competitors in the high end database market in technology and brand recognition. Informix has been crushed, Sybase is bleeding, and SQL-Server doesn't appear likely to catch up any time soon. The proliferation of internet and intranet based information dissemination systems is fueling explosive growth for "infrastructure" services such as web servers and, you guessed it, high end relational databases. Hence, the growth picture for Oracle looks as bright as it ever has if not brighter. Thus, it simply boggles my mind that the market would punish this stock so severely for missing estimates by a few pennies. This is the best time to buy ORCL in a long, long time. In 12 months I predict we'll be laughing at this correction just as INTC investors laugh at all the people who "chickened out" on the various tidbits of non-news that have driven that stock down, for very brief periods of time, over the past 36 months. Heck back during the FDIV fiasco one would think that INTC was near bankruptcy from reading some of the posts on this board. It, of course, thundered back as it always does. So will ORCL on this FAR less significant news.