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Technology Stocks : All About Sun Microsystems

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To: RichL who wrote (3332)7/21/1997 5:09:00 PM
From: uu   of 64865
 
RichL:

> When do you think would be a good time to invest in SUNW again.

I believe, IMHO of course, despite the act that analysts are upgrading SUNW and the much interest shown in the stock, there will be huge profit taking with SUNW as the stock is a bit ahead of itself at this time based strictly on the fact that many investors still either do not know or do not understand its potentials 6-8 months down the road. And because of the new computing model is so hard to be grasped and imagined by most average share holders their love affair with the traditional Wintel is stronger than their new love with Sun (although that love is mostly now pointed toward Intel than Microsoft). I know most analysts are now claiming of the huge potentials and their love for Sun, but in reality I truly do not think they know whay they are talking about and deep down they are not convinced with the words they are speaking. It will take another quarter of solid revenue for them to truly become in love with Sun thus making SUNW a real high flyer just like Microsoft became a few years ago. So this means that within the next 3 months I will not be surprised to see SUNW shares trading as low as $37-$38/shr. If that comes to be the case I suggest to load up as many shares as you can because you would be getting the shares practically free! Meanwhile SUNW, in my opinion, if it comes down to $42 is a fair value and under that you are getting it at bargain price.

In any event, keep in mind whether you buy the stock at $47 or $50 or $37, it does not matter because a year from now it will be in its 90's (if no split is done till then).

Regards,

Addi Jamshidi
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