Twister,
Have you been following the stock price of SUNW for the last 3 months as the last of the Wall Street naysayers began to realize the bright future SUNW is rushing towards?
No reason to mark down MSFT as thay continue to generate huge cash flow. There is a major PC debacle coming down the pike, however, as the consumer market is saturated, and the corporate market is going to be pinched by Y2K expenditures in 1998. Lower cost, NC solutions will be far more appealing in this environment, although spending may be so curtailed that noone sees these expenditures.
The explosion of the server demand continues, however, and Sun has a dominant position in this high margin area thanks to SGI (yes an SGI executive admitted the sale of the superserver technology was a major blow to the company).
The market is indicating the future prospects of SUNW, but you are swimming against the tide in your macro assumptions. Good traders/investors have the flexibility to learn from market signals, and arguements consistant with a stock's directional movements. Your arguements reflect the issues which held SUNW back for the last year, but they seem to have dissolved into the current positive outlook by street analysts, thread paticipants and technology gurus...
Cheers,
Peter Shaw |
