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Technology Stocks : All About Sun Microsystems

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To: Charles Tutt who wrote (44255)7/24/2001 2:45:34 AM
From: Charles Tutt  Read Replies (1) of 64865
 
Thinking ahead to next year --

The quarter just past might make comparisons easy next year, assuming the economy eventually recovers, and Sun with it. Even if Sun doesn't get back to its 21 cents per share Q4'00 pro forma, but only half that (e.g. 10 cents), it might still look like a more than 100% growth rate from the 4 cents Q4'01 pro forma. Annualize that 10 cents and put a PEG of 1 on it (using the quarter just past as the base when calculating the growth rate -- I know it's a leap, but let me dream for a minute!), and you arrive at a price most of us could probably live with.

Even with a longer term estimate of growth rate we could do pretty well, especially with a little higher PEG and/or a little fuller recovery.

I'm not saying it will happen, but stranger tales have been told.

JMHO, and not investment advice. Do your own research and form your own conclusions.

Charles Tutt (TM)
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