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Technology Stocks : All About Sun Microsystems

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To: Dennis who wrote (14872)	3/20/1999 12:01:00 PM
From: Alok Sinha	Read Replies (1) of 64865

Dennis, SUN's P/E (based on 199E est. of $2.80 per share) comes out at about 40. Based on trailing earnings (1998 actaul) it is 50+. Historically SUN's forward P/E has been between 25 and 30, and trailing P/E betwen 20 and 25. But that was before Wall Street started recognizing that the "Network was the computer". Also when average P/Es in S&P are 50% higher thean historical levels, premium tech firms will comand a highr multiple. I have been a believer in SUn for a long long time, but in my opinion - at these levels you can't consider it a value stock. Dosen't mean it won't go higher (momentum players are now a big part of SUN's move). From being a staid / passive investor in SUn I have been trading options recently - and the implied volatilities are not high. Regards Alok

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