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Technology Stocks : SUN microsystems: 7/18/96 quarterly report - BIG!

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To: Jim Patterson who wrote (85)7/14/1996 8:40:00 PM
From: Andy Chen   of 386
 
AAPL is doing business at a loss.

amelio is a very aggressive costs reductor. however, in order to reduce
cost, more COST has to inflicted initially. this is not good for short-term.

the reason why SUNW went up after apple merger broke up was due
to the fact people WANT short-term, immediate earning effect. they
are impatient to wait for 2 years until the apple merger shows its strength.

needless to say, when a merger is announced, pro's short the acquirer
and long on the acquired. sunw is definitely valuable at 40-42/share.

but, short-term, i think it is fair to say it will get corrected with the rest
of the high-techs.
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