given signs that some of SUNW's key end mkts have bottomed, the co is likely to see seasonal patterns that are closer to normal which, coupled with SUNW's relatively low valuation, should cause the stock to generally track its peers.
Where do these analysts get the right to call this stuff analysis.
SUNW's key markets (I assume she means telco, finance and dotcom, but who knows?) bottomed in September 2002, and have shown "sign of stabilization" since then. But SUNW still posted terrible results in March relative to its peers (in other words, despite SUNW's key markets having bottomed 6-9 months ago, SUNW still underperformed last quarter).
As for SUNW having a relatively low valuation, wasn't it 40% cheaper 3 months ago (March, SUNW about $3.50 per share), when its key markets had shown "signs of bottoming"?
As for seeing seasonal patterns that are "closer to normal" does that mean we should expect a 5% to 10% sequential decline in revenues in September (June is fiscal year end) and therefore expect that "close to normal" seasonal sequential revenue declines to result in share price appreciation?
How about some analysis that indicates Sun will gain market share, increase visibility, increase profitability or do any of the things that encourage investors to buy shares? Tech spending bottomed in September 2002 quarter - what makes this person upgrade Sun on that basis in early June 2003??
Elroy |
