My advice is this: take advantage of the stock at this great discounted rate, you'll never see it again. Sun is on their way to $450-500billion cap and nobody is in the way to prevent it from happening, not even IBM.
Cheryl, I'm sorry to say I disagree. I think this great discounted rate will be quite visible for a while, because Sunw is now IMHO dead money for at least the next six months and probably the next nine, until they come out with an earnings report that shows a major impact from new-product revenue. Sure they're growing, but in this market it doesn't matter. They did what they needed not to do: they finally came up with an INTC/HWP-style earnings report that fell short of the herd's expectations and substituted tap-dancing and bravado for NEW PRODUCT SHIPMENT NUMBERS. I've been saying this for a year. I've been getting told for a year by the rigid optimists that everything is ok and on schedule. It's not, and it's not, otherwise we would not have seen a CC where raised voices substituted for raised numbers. The numbers yesterday weren't awesome, they were nothing special for Sun. Good enough isn't good enough for Sun. Microsoft has gotten into the position where good enough is good enough...that's why twister gets to gloat today. Sun hasn't, and I don't want it to.
I know it's difficult to accept what appears to be an irrational market context, but who ever said anything about rational except Dale J.? In this case, I believe that SUNW and its management fully deserve what the market is doing to them, and will continue to do to them until they get their act together. You want a $500B cap? Tell them to ship some big USIII servers. They should already have been out long ago.
--QS |
