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Technology Stocks : All About Sun Microsystems

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To: Charles Tutt who wrote (44865)8/31/2001 4:39:23 PM
From: High-Tech East  Read Replies (1) of 64865
 
... hey Charlie ...

Today the Wall Street Journal shows SUNW's P/E at 40 for the last 12 months. While P/Es get distorted during tough times (as exist now), to me, that is a frightening P/E number for SUNW. It tells me the price could drop a lot from where it is now before it bottoms. Unless the economy is about to turn around on a dime, which I think is about an 1:8 probability. I have previously said that SUNW might go as low as 6, but I did not think it was likely ... now I wonder if there is more of a real chance than I thought.

I had not looked at the P/E recently as it has been a long time since I followed it closely. That 40 P/E makes me shudder. What do you think?

P/E of 40 with a price less than 12 ... yuck.

Ken Wilson

NOTE CHANGE - 1:8 probability, not 8:1
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