| I certainly agree with the 'tulip' analogy and the 'dot com' equity buying mania that had people bidding up not just Amazon, but IPOs of online greeting card companies and other stocks, not with earnings, but 'burn rates'. Even Yahoo, to some degree. Although I've come to better understand their business model, everytime I see a fellow I know who is a Yahoo VP (couple times a year) I'm facsinated to ask him about Yahoo valuation. --- SUNW isn't a dot com, though. We have the industrial hot hand, hyper-growth 40+% organic earnings and an absolutely awesome balance sheet. --- There are x amount of dollars with x amount entering monthly which want to be in US equities. The equities of companies like Sun
get bid up not just because of 'rational' anticipation of future earnings, but because a big chunk of bonus billions gets to live at the market leader's house, like some Stanley Cup. --- You're posting to people who aren't 'stock' investors. We're 'company' investors (for the most part). In 1996, after doing classic, conservative due dilligence and triangulating that with my knowledge of 'network', the general computing trend and Sun's core competencies, I went long SUNW in a big way, largely swapping out of (rational value) electric utilities in legacy portfolios. I'm now up almost x20. The electric utilities? Well, they're actually *down over that time. --- How many times would you have told me along the way to swap back into electric utilities? --- If you owned a business and people started beating down the door for your product, you'd decide that'd be a good time to *sell? --- Tune into the SUNW earninings conference call. I think you'll get a better sense as to why the SUNW multiple is as "high" as
it is. --- FWIW, If I wasn't already so SUNW weighted, I'd be buying the compnay hand over fist right here. -JCJ Edit: And not because I'm 'greedy'. |
