Sankar:
You state:
> If you consider SUNW as the Coca Cola of the computer
> industry, then its price will be simply a little bit higher than $34 if you
> want to accord SUNW a P/E of 33.94*17.21/31.36.
With all due respect I fail to see the connection here.Perhaps you misunderstood me. You brought up the question of competition that Sun will be facing with IBM, and HP. I simply tried to say that certainly there will be competition. However the ones with the brand names, perception of quality and leadership will always out run the competition. In addition to that the demand will be so huge everyone will be able to make money in this huge uncharted market. And as an example I brought up Coke, Pepsi, 7UP, and Dr. Pepper, which all compete in the beverage industry. Regardless of what Dr. Pepper, 7UP, or pepsi do, when you go buy a soft drink most of the time the only name that first comes to your mind is Coke. There was no intention of comparing P/Es, or stock prices. Surely you agree that beverage industry is completely different than the server market!
Regards,
Addi Jamshidi |
