ALL: must read: 3/10 MS reiterated its "strong buy" rating on the stock and still expects SUNW to meet Q3 Wall Street estimates of $0.60 a share,
even though the problems in Asia are likely to dampen revenue growth in the period. All the feel-good...."
ADDI
two downgrades, is it time to buy? MS downgrade not earning related. Remember few days ago when sunw went to 38-39 and then the company said somehting like they were comfortable w. earning.
am i remembering this wrong? can some one please verify.?
then Sunw gapped up to 44 the next day?
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SUN MICROSYSTEMS INC. (SUNW) 41 5/8 +3 27/32. After one day of heavy selling, shares of
enterprise network concern are regaining yesterday's losses following a ratings upgrade from Salomon Smith
Barney. One day after the Compaq Computer (CPQ 25 1/8 -5/16) earnings warning sent the stock of Sun
Microsystems tumbling due to concerns over weak server sales by CPQ, shares of SUNW have turned
around as Wall Street has rallied around the stock, as Salomon upgrades the issue from an "outperform"
from a "buy." Similarly, Morgan Stanley made some positive comments about the stock this morning, stating
that yesterday's selling was overdone and noting that the company's workstation products had little
overlap in the areas where hardware weakness has been noted. Accordingly, Morgan reiterated its "strong
buy" rating on the stock and still expects SUNW to meet Q3 Wall Street estimates of $0.60 a share,
even though the problems in Asia are likely to dampen revenue growth in the period. All the feel-good
pronouncements have left the stock about $1 short on Friday's closing price, but while the stock may still be
underwater, in no time, all the negative sentiments that revolved around this issue seems to have evaporated.
Yet, the Asia problem is not going to go away any time soon, and with the outlook for server sales still
looking iffy, the risk remains that SUNW could still disappoint despite the positive strokes it has recently
received. With another month to go before the company releases its fiscal Q3 results, investors may feel less
than settle buying this issue with the downside still very much exposed. |
