Re: G's & K's. Not to beat this thing to death over semantics, but there is a difference of opinion. Message 12218928
These folks (and Buckley is a real old timer over there)have debated the issue a number of times on the G&K thread, and have come to the conclusion that on an overall basis, SUNW is more in the "king" category, but that it does have a number of simian tendencies.
So, for the sake of domestic harmony on this thread, I'll accede to the clear majority vote, but note that there is a legitimate disagreement even amongst the crowd that focusses on it daily.
The real point I hope all the SUNW longs can agree upon is that whether Gorillas or Kings, the high P/E's can be justified vis a vis non G&K's with similar multiples - but Kings are more susceptible of being dethroned.
With respect to margins on the core server business, I was surprised by the statement that in the same class CPQ had higher margins. Maybe this is a good area to look at - if SUNW's margins are supposedly lower than the pack from the get go, and its Gorilla/King/Whatever status is under attack, should we dump our SUNW and buy, say, HWP? (or cash??)
Don't think so personally, as long as Scott keeps hitting the numbers. |
