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Technology Stocks : All About Sun Microsystems

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To: Bald Eagle who wrote (5417)11/10/1997 12:39:00 PM
From: Karl Radke  Read Replies (1) of 64865
 
In my opinion, this stock looks good for several reasons. PSR is ~1.6 - that's great for tech sector. PSR's of other leading techs like INTC, MSFT, and CSCO are stratospheric vs. SUNW's. I hardly use p/e because it is a backward-looking measure and usually has some flaws if there are charges (i.e. makes it look higher than it is and thus appears more risky to potential investors). Forward p/e is 15.5 this yr and 13 and change for 1999. That's pretty good for growth estimates in 15-20% range. Considering entire p/e of market is 20ish and growing earnings at overall rate of 15% or less, i think SUNW looks tolerable and perhaps downright attractive vs. the market. Also, consider that it is now trading at roughly $4-$5 more than 52 weeks ago. Now that's some pretty pathetic upward price movement if you ask me and not deservedly so. Risk/reward looks good here. I'm in at 34 7/8.
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