Dvorak? Oh well. His main gig is to sell his column.
If Sun's business is toast, then why are IBM and HP still selling Unix servers? Oh, I get it - they are different. IBM has software that (although portable) sells hardware. HP has printers that generates excess cash which it needs to rechannel back into the society via unix servers.
Why hasn't web killed TV, printed books, paid music and newspapers yet? Oh, and also, all those financial consultants and columnists since the web is so much richer and is free? Why Dvorak fear the wrath of outsourcing and go into, say, dental hygiene?
Dvorak hasn't probably yet examined the business segment reporting of Sun. Furthermore, he has been a consultant for far far too too long long. He would be the last person I'd go to for operational expertise.
On Sun stock. Dvorak (and many other investors) are suffering from what's commonly called a "reference point" or a "desire to break-even". To them, buy/sell decision is based on emotions, not on economic or market rationale. From their perspective, $60 was right and $4.50 is therefore wrong - not the other way around. There was recently a very nice post here that gave a half-page valuation analysis.
BTW, Sun is quite volatile. There is decent option premium to earn it you don't mind limiting your upside or assuming a reasonable downside.
regards
-d
[edit: don't get me wrong. I've my own share of poor investment decisions. But my livelihood does not depend on my popularity.] |
