Market opened with a nice move by 8.6+ million shares traded. since then pulled back to buy back the borrowed stock. Before noon the volume is over 122 million shares.
Its interesting, if you are day trader, scalping each other.
If you are investing for the fundamentals of turned around situation; you will have a long wait.
Recently, the earnings report showed service revenue increased, but hardware decreased. We are very interested in service business for Sunw(Ebay and MasterCards, etc.). Hardware was liquidated to make room for larger computers and Intel cpu based computers. So, it is all good news.
Next quarter, SUNW amy have to have some treasury stock shelved with SEC registration, to satisfy the many interested investors. Short interests should be reduced, then.
Many smart management knows, if stock price moved up, sell treasury stock to present stockholders. If stock price gets too cheap, take the company private, if you have confidence of how to manage the company in the service sector?
Don't fool around with buy back plan that is meager. Or let short interest go too high. Stockholder value is the CEO's responsibility, more than earnings and P/E ratio. Talk to the market makers? |
