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

To: zc66 who wrote (6635)	4/1/1998 6:42:00 PM
From: jack wuo	Respond to of 19080

any way, sold 3000 share at 31.5, which I got from Mar 25 call option; covered my shorts with small profit; but 30 calls I used for short protection turns out big profit; so I bought shares upon call expiration; but run up to 31 is more than I expected profit. I will take a break, to see if 32 resistance is intact, to see ORCL goes down or charge ahead. I like WSTL and PFE, for now. Good luck

To: zc66 who wrote (6635)	4/1/1998 8:25:00 PM
From: Adam Nash	Respond to of 19080

If the PE of ORCL could be the same as that of MSFT (61), ORCL stock price would be $66.5 by September. Yeah, and if Oracle was Microsoft, its PE would be 61. Oracle is not Microsoft, and it doesn't have the earnings/margins of Microsoft. Microsoft has only double the revenue, but far more in earnings. Given Oracle's position (#1 in enterprise backends), I feel comfortable with a P/E of 30-35 based on solid earnings growth in the 20s. However, the current P/E of 41 does seem high looking down the road. I expect over the next few years to see P/E contraction and earnings expansion. However, I appreciate the rationale. I do believe that people are underestimating the Oracle 8 transition, just like for 6 months after Win 95 came out, I was reading articles based on how it wasn't as big as they thought. Whatever. They miss the point: All these application services vendors, consultants, software companies have to make their stuff work over Oracle 8 - and well. Very soon, Oracle 8 is the default product you eventually want to run everything else well. This is a complicated system, and Oracle is the root of it all. I expect big Oracle 8 revenue growth in 2H 1998, 1999.