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Technology Stocks : All About Sun Microsystems
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To: Alex Chun who wrote (23611)11/30/1999 1:31:00 AM
From: JC Jaros   of 64865
 
Separate but related: I *like* the fact that Sun makes money, unlike, say, Amazon. But Sun's valuation is not justified by its current earnings or its near-term (i.e. foreseeable) prospects. Am I invested in a "stealth Amazon?"

Like QwikSand says, "One never knows, JC". It's not all that hard in this case Alex to project near term future earnings out for SUNW. The points Charles made were all quite valid.

One of the tenents of fundamental investing is "buy and hold". It's that way to keep you from constantly second guessing the market. SUNW has huge franchise, and there doesn't appear to be anything in it's way. SUNW has been through this type of hyper-growth period before. We (in the last 5 years) have never seen SUNW pull WAY ahead of itself. There's really no reason to suspect that it is here.

I joked that 'fair value' was where you sold it. I've previously joked that suddenly, with this type of multiple, I've become a subscriber to the 'efficient market theory'. Clearly, SUNW is being bought at this level and is being bought by (well informed) institutions.

SUNW is the brightest equity star I know of. There may be better value plays right now. Maybe AT&T is one. I've been buying that. I'm not selling SUNW though. In the time that you and I have owned it, "now" has almost always been the time to buy SUNW.

IMO

-JCJ
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