JDN,
That article projects that the exchange rate for the yen will be 160 next year, thus the downgrade of SUNW. Firstly, how do they know that the yen will go to 160. Won't the US, Japan, Europe and China intervene if the yen hits 160? Not many foreign countries can tolerate 160. Secondly, if the yen goes to 160, most of the technology companies can't meet expectation, why don't saloman downgrade all the technology companies including MSFT, CSCO, CPQ and INTC, but just SUNW?
By the way, do you know the geographic distribution of Sun's revenue? Also, what is the reason for the recent runup of Netscape's stock price?
Regards,
H.Wai |
