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Technology Stocks : All About Sun Microsystems

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To: Pierre who wrote (8681)	3/30/1998 6:40:00 PM
From: Alok Sinha	of 64865

When I spoke last with SUNW's HR representative right after somedowngrades occured a couple of weeks ago, she made a big point about the analysts' not reducing their earnings estimates. I wondor what her response would be now. I don't think SUNW is providing lower guidance yet. These lower revisions are probably a result of the analysts' own research / perception of server sales in Asia and currency impacts. I think per anlysts' logic, since this is supposed to be SUNW's strongest qtr, (and EPS est. reflect that) a minor impact from adverse developments (impacting a host of high tech cos.) could result in lower EPS than estimated. Hence the lowered estimates while maintaining the rating. After the MS conference, their analysts had also lowered EPS by 3 cents to 60 cents, while maintaining a "Strong Buy" rating. The result of all this may be a mean EPS figure which may be easier to beat (I hope). One thing is for sure, the high risk strategy of taking on the might of MSFT (and perceived as such), EPS misses will not go down well with the Street. Regards Alok

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