Sunw and Msft, the stocks:
Am not sure what you are talking about in terms of the market not liking sunw.
Have owned both sunw and msft for many years, by far the two best investments ever made.
Msft is so high now it is making me dizzy. If I was sure I wouldn't be cursed for life like the Red Sox after they sold Babe Ruth, I might even consider selling some now. Sunw is in a bit of a lull, just the time to buy more.
In mid 94 sunw was a split adjusted 5. It is now over 46, an appreciation of more than 900%.
At around the same time msft was a split adjusted 10 or 11. It is now 80 or so, an appreciation of 800%.
If you look at a long term chart sunw has done nothing but soar. Sure it sells at less than half the multiple of msft. It isn't growing as fast, doesnt have the ironclad monopoly/brand that msft does, doesn't have anywhere near the gross margins. But a superpowerful, well-respected, heavily entrenched company nevertheless.
This pe differential has pretty much always been there, but it is more exaggerated today than I can remember. The fact that msft pe is higher in relation to sunw than is historically normal, means, IMHO, you should consider selling msft, not sunw.
JS |
