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Technology Stocks : All About Sun Microsystems

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To: Pierre Aydin who wrote (7681)2/12/1998 12:18:00 PM
From: Alok Sinha  Read Replies (1) of 64865
 
I think "there is a vast right-wing conspiracy" to keep SUNW from taking off.

Settle down guys. Irrespective of the games the analysts play, the retail investors with "buy on dips" and hold for the long term approach do quite well. Volatility is part of investing in high tech firms. There will be ups and downs with firms like SUNW which do not enjoy the monopoly position like MSFT, INTC, etc. in the market place. Sun does have a high risk strategy of taking on MSFT by the horns (which Wall Street does not like becuase of the track record of other firms which challenged MSFT - you can't blame them)

Hold or buy companies like SUNW because of their products, startegy and leadership - not based on what some analyst says whose contituency is quite different from ours. Remember if they were just doing analysis for thier firms and their clients - they would keep research recommendations private (like Warren Buffet) for as long as possible, and benefit by it. The fact that the recommendations (upgrades or downgrades) are publicized is that it affects the market, and that is why they profit (by the volume - brokerage commisions, and gains/losses for large clietns).

And if you can't handle volatility but would still like the upside potential , buy insurance through protective puts (a little expensive - but will give you peace of mind).

Everything said, I am sure there was something said in the Annual Analyst meeting which some analysts did not like (even though it was reported to be upbeat). In spite of their con-games, I don't believe the analysts are dumb to downgrade a co. esp. after it has come out with great numbers / esp. with the tech stocks booming. Does anybdy have any synopsis of the Conference?

Twister, where are you. I am sure you are pleased that a couple of analysts have (at least temporarily) climbed on your bandwagon.

Regards

Alok
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