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Technology Stocks : All About Sun Microsystems

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To: JDN who wrote (63437)11/3/2005 10:04:01 PM
From: Dinesh   of 64865
 
Although IMHO there is nothing sad about it. A future expense has been avoided, and the assets (on books) are lower than they should be.

The first results in operating earnings that appear higher than they would have been. The second results in a return on assets higher than it would have been.

Then there will be a dip. Some call it regression to mean, but that view is not consistent with reality.

A lot of companies do that - some with malicious planning. In Sun's case, I would think it's not premeditated but just how things happened (if they did happen as the original poster thought)

-dinesh
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