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Technology Stocks : All About Sun Microsystems

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To: Lynn who wrote (34600)8/24/2000 7:13:41 PM
From: fuzzymath  Read Replies (1) of 64865
 
A curious thing: SUNW going to $723 3 years from now would be a significant slowing of the growth of the stock price compared with what has occurred in recent years. SUNW gained 900% in the past 2 1/2 years, but this $723 value 3 years from now is a mere 483% gain over 3 years, or just 334% in a 2 1/2 year period. Long-term SUNW shareholders will feel that the "wonderful" times have passed, though these new times will still be quite good.

Yes, the $723 in 3 years assumes the stock will track the 80% rise in profit in the past year. Sales did not rise 80%, so profits may not really continue to rise at an 80% pace. And, with P/E ratio at 100+ already -- I think there will be a cap on P/E ratio at some point, which will bring share price increases more in line with earnings increases.

Kevin
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