So I'm shortsighted for being long SUNW? Geez, if I get any more shortsighted I'll be able to retire (:->.
When I bought SUNW two years ago, some people called it "way overvalued". Am I happy now with the 6X gain? Yep. If you bought five years ago, you're sitting on a $2-1/2 stock that's currently $95.
Who is their right mind would abandon a stock that's making them rich?
A little perspective from my 25 years in the computer hardware industry... For the last 8+ years companies like DELL, CPQ, IBM and HP have been "on the attack against Sun". Sun is the acknowledged leader for mid-range and large servers, so everyone aims for Sun. Servers are where the money is, not workstations.
But is Dell/CPQ/etc. a serious threat to Sun? Maybe, but I wouldn't bet the farm.
Fact is, NT doesn't scale worth a crap. So Dell/Compaq/etc. are working hard, but they're hobbled by Microsoft's ineffectual attempts to produce a world-class OS for servers. Desktops? Yep, MSFT won. Hands down. But servers are another ballgame, and Sun plays the game well.
Everyone's investing style is different. But in this market, in February 2000, I honestly can't recommend you look for "underpriced, value stocks" as your sole approach to investing. As one of several strategies, yes. But don't neglect the quality Internet stocks (SUNW, ORCL, VRTS, CSCO) unless you want to miss an early retirement (:->.
And regardless of what you buy, good luck to all.
--JC |
