Opinion on  Red Hat Inc (RHT)     Sector: Technology  >  Industry: Software & Programming
Red Hat is a buy

Red Hat is at a 52 week low. The downward pressure from Oracle (ORCL)'s announcement is unfounded. The core business is solid and undervalued. Linux is a core part of mainstream enterprise IT strategies and RHAT is at the center of this movement.

Hi folks,

Red Hat is up 20% today after announcing strong sales growth for last quarter. The P/E on this stock is north of 60. I think until we get some visibility on the impact (if any) on Oracle's (ORCL) announcement has on their sales, it may be time to take some profit on this, which is exactly what I have just done.

I continue to believe in the long-term value of this stock. It's just a bit richly valued at the moment in light of the poor visibility for its near term prospects.