Sun Microsystems (SUNW, news, msgs) and Oracle (ORCL, news, msgs) in the single digits.
“Unless you think there is going to be an extinction-level event and Sun is going away, at six bucks I’m comfortable buying it now,” he says, contending that the company has deep management that can survive the recent loss of a couple of top executives, a ton of cash, not much debt and a lock on the high-end UNIX workstation business. Rekas doesn’t buy the current argument that Hewlett-Packard (HPQ, news, msgs) is eating Sun’s lunch in the high-end server business, and he doesn’t think low-end servers running Intel (INTC, news, msgs) chips and Microsoft (MSFT, news, msgs) software pose a serious threat on the low end either. Rekas is not expecting the stock to go from $6 to $12 overnight, however, adding with a guilty laugh: “I’d be happy to see it go from $6 to $9 in the next 18 months.” |
