Hi Iraj:
> Hi Addi, Any opinion as why SUNW has been showing so much
> weakness? I understand NASDAQ and Technology is being...
Well, IMHO, in addition to Nasdaq high quality tech. stocks going on sale right now there are a combination of factors for the down trend in SUNW's price. First there was an announcement by IBM that they are going to sell work stations running Windows NT as the base operating system. and secondly there was an announcement this morning that HP and Microsoft are about to announce some sort of agreement for the support of Windows NT (my guess is HP is also going to make some type of workstation with Windows NT as its base operating system). All this on top of the recenet announcement of Microsoft for the support of its ActiveX technology on UNIX platforms have made Sun look like a sitting duck! While these are serious challenges to Sun, IMHO there is absolutely NOTHING (and I mean NOTHING) to worry about. If this had been a couple of years ago I would have been a 'little' worried but now Sun has evolved from a UNIX only workstation company to an internet solution innovator company. The demands for its servers, (and even workstations) and soon NCs will grow as each day is passed. The software componization have (and still will) cause too much demand by corporations for servers, NCs and workstations. There is big money to be made by everyone beyond imagination. As for Windows NT and this is again my humble opinion, it will not be a major threat to UNIX. I have been using NT for the past 4-5 years and know it inside out, and prior to that I was a UNIX based engineer for over 11 years and eventhough have not used it much for about 4 years I still know it very well. Eventhough I would not change my Windows NT for UNIX or anything else, I can tell you one thing, NT can never replace UNIX! NT is a 'cute nice' operating system for R&D and small to semi medium size critical mission applications, and it has real nice features. But try to sell that to IRS, or Bank of America, or CitiCorp, or Gold mining companies in South Africa, or... and you will find out that they will not even give you one second to even talk to you! As for as Java and ActiveX, I am becoming more convinced that ActiveX will win over Java (especially once it is adopted on UNIX). But that is OK. As far as Sun is concerned all that matters is the internet model it has introduced to the maket that needs to succeed and not necessarily the implementation of it. Microsoft has very smoothly stolen/adopted Sun's internet model and it will make that succeed greatly which will benefit greatly Sun, HP, IBM and smaller players like Auspex, etc.
As for Sun, it is an evolving company that is growing fast. And it is actually an interesting time to buy this stock because the market still looks at Sun as a UNIX based only company. Just look at the latest agreement Sun has made with LSI logic to develop the chips that has been designed by Sun for telecommunications equipment, office machines and network computers.
The stock is right now on SALE in my humble opinion and the sellers are practically blind. I believe based on the current P/E and outlook of the company SUNW under $32 is a steal (and right now it is selling for around $26/shr). I personally wished I had the extra cash to buy as many as I could and add to my existing shares, but unfortunately money does not grow on the tree! Patience and good investing during the sale season will be awarded greatly when the market gets to be too greedy!
Regards,
- Addi Jamshidi |
