I think sunw has been taking a beating for several reasons, IMHO.
The hype on sunw from many sources reversed and everyone took profits and left in the last weeks. Perhaps some of the hanger-ons are still waiting; and when they see a slight recovery (Thursday) they bail.
Weakening trade deficit is bad for multinationals. Also strong dollar hurts European and Japanese sales.
Inflationary pressure from all indications. Very likely interest rates will increase on Tuesday. (Watch Bank stocks for indication of this ie, CCI citibank).
And mostly-lemmings run together. As the momentum drops, big investors move to greener pastures.
I think the downward pressure still exists for sunw. A nice recovery, like Thursday is followed by a crush on Friday. The stock just doesn't have upward momentum, yet.
However, there is continuous good news. I am long, like many in this group, and will cringe at the bottom and smile at the top. I just don't think the worst is over yet.
Long term good news:
-P/E relatively low compared to many others (about 20). Sunw will become a bargain stock in many eyes and the lemmings will line up for another jump.
Earnings report coming soon: Jury is still out. bad news probably won't change anything, as the stock is already down with this in mind. A positive surprise could help alot.
This report:
Study sees sharp growth in network PC market Study sees sharp growth in network PC market March 21, 1997
Web posted at: 1:30 a.m. EST
REDWOOD CITY, California (Reuter) -- Shipments of consumer network computer devices are projected to jump from 2 million in 1997 to more than 7 million in 2000, according to a study from Zona Research Inc.
In its report "Network Computers: Markets, Opportunities, and Trends," the firm projects that the total market size for commercial network computers could grow from about 1.7 million units in 1997 to over 6.7 million units in 2000.
Zona said the corporate market for network computers will be primarily a replacement market, with network computers replacing terminals of all types.
Network computers are scaled-down, lower-cost computers that access the Internet and other networks. Sun Microsystems and International Business Machines Corp. have introduced Network PC's. Oracle Corp. has been a big proponent of the network PC.
Zona Research is a wholly owned subsidiary of IntelliQuest Information Group Inc.
Copyright 1997Reuters Limited. All rights reserved.
systems and International Business Machines Corp. have introduced Network PC's. Oracle Corp. has been a big proponent of the network PC.
Zona Research is a wholly owned subsidiary of IntelliQuest Information Group Inc.
Copyright 1997Reuters Limited. All rights reserved.
I don't post often, so this may be unnecessarily long.
One last comment. Please do not condemn the bad news bears. If my stocks go south, I want to know, don't you? When the posts are irrelevant, I ignore them, so should you.
Good luck to all of us.
Jay M.
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