Hi,
I recently sold my entire stake in the company and I have been a shareholder since 97'. As I stated before, I think their business model is old and dated.
I do think there is value in the company but in order to see it the company should be broken up into software, hardware, and chip architecture. Even the, I am not sure if the 3 companies market cap can exceed the totality of it's current issue.
There are just too many software and hardware companies in play for Sun to become a dominant force. What they needed to do, and this will happen, is for a major consolidation to take place within their product categories. A.K.A what Oracle is doing in the enterprise software space.
The problem is that Sun is not going to be the consolidator of the industry. They are not making enough money or generating enough free cash flow to buyout DELL, HPQ, IBM, etc. So, unfortuneately, they are left waiting to be purchased which will happen as their market share continues to degrade.
Personally, I think a Sun/Dell combination makes the most sense. Both are struggling and I think that Sun has good technology and DELL has massive distribution. Together, they might be able to put up a fight with IBM and HPQ.
To anyone still in the stock, good luck. Be prepared for some heartbreak and less than forthcoming info from management. The $7 million dollar pony-tailed executive is clueless.
Lastly, what really pisses me off is the April fools video on his blog. On April 1 he knew the company's quarter sucked and he is in a joking mood. I guess you can do that when you make $7 million a year. It was no joke to me when earnings came out and the stock price went down 25%.
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