JDN, >>>"Plus, remember
for whatever reasons SUNW has histoically sold for a low multiple compared to
say IBM so once its in the fold, SUNW's earnings on IBM'S financials would
immediately jump the price."<<<
You have that backwards. SUNW historically sells at a higher PE multiple than IBM. Today, they are pretty close (~25 vs. ~21). A couple of years ago,though, IBM was closer to 12.
IBM - Sun is hard for me to imagine. First impression is that IBM would drive Sun crazy with their conservatism. Then, IBM has changed a lot in that they have given, I think, their different lines of business a lot of autonomy. Do what you need to do to make a profit and we'll stay out of your way. That is, I think, the byline.
Let's face it, you SUNW longs just want a big premium on your stock. Can't say as I see anything wrong with that.
If IBM/Sun doesn't go through, but Sun was even moderately interested in it happening, I'd have to believe Sun must have been thinking their position is weaker than they'd let on. JMO.
Tony |
