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

To: Vol who wrote (10054)	3/13/1999 12:29:00 AM
From: Adam Nash	Read Replies (2) \| Respond to of 19080

Just to add my two cents: I do not believe in day trading, and I strongly believe in the tax advantages of buy and hold. However, just for clarity: If you buy a stock at $50 and then sell at $60, you do not have to wait until $56 to buy profitably (assuming a ~40% tax bracket). The reason is because your stock at $60 had an associated tax liability: at some point, you have to cough up taxes. If you were doing proper accounting of your portfolio, that liability would grow right along with your unrealized gain. Yhe new stock you might buy, even at $59, would no longer have that liability. The only difference is the potential earnings you could have made on that 40% of your gain. Just pointing out that it's more complicated than the immediate tax hit. Buy and hold is the way to go. With this years earnings at $.90, and next year at $1.15, it seems that Oracle easily justifies a historical P/E of 30, which would put the price at least 34.5, and even more given the current market premium. That would net you a straight 20% gain from today's price, with a conservative valuation. With a more agressive valuation, Oracle could easily see 40s this year.