SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Future earnings for JAVA
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Peter Shaw who wrote (545)11/13/1996 4:02:00 PM
From: Jeng Chiu   of 918
 
SUNW is the biggest bargain in the Tech industry. Several companies have been cutting prices on their Servers but none get punished like SUNW. McNealey's long term strategy should be lauded. If this was some other Wall Street darling, the stock would rise because myopic analysts praise their efforts to gain market share. If you read the press release, these price cuts are an agrressive campaign to solidify the compnay's position as number one in the workstation and server markets.
Trading at a 20% discount while the other Tech stocks are reaching all time highs demonstrates how cheap this stock is.

Something else to consider. A margin decrease can be offset in two ways.
1. Lower cost of goods sold (through economies of scale)
2. Increase sales due to lower prices.

Therefore if SUNW can increase sales and decrease costs, the income statement should not be affected.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News