Future earnings for JAVA Message Board

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Technology Stocks : Future earnings for JAVA

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To: Senthil Sankarappan who wrote (846)	12/30/1996 1:34:00 PM
From: uu	of 918

Senthil: > There was some insider sales mentioned in Barrons but did not > seem to be a major one to me. I think year end portfolio dressing is > also playing a major role. > If SUNW does not close strongly today or tomorrow, then the > picture will look really ugly :-< As someone who has been investing in SUNW for tha past 2 years I also used to also think that SUNW's insider selling was a terrible thing. But I have come to strongly believe that it does not mean anything bad to the company or the stock. If you go back 2 or 3 years and look at the stock about 4 weeks before the earnings report you will see 2 common factors: 1. There is some sort of insider selling news. 2. the price of the stock is about 25% below its all time high at the time. Just a week before the earnings come out the stock starts to move up in the anticipation of the record earning and it either hits an all time high just the day before the earning comes out or about a week after the earnings come out. Then the stock will go in the same pattern of declining by as much as 25% of its all time high and the whole cycle repeats itself. The important thing is that the lows are always higher than the previous lows set. As for a big drop today, I think just like how the stock has behaved for the past 2 years the reason is big institutions taking their profits for the year.. This will continue tomorrow also so nothing to worry about. And this is not just SUNW specific. It is happening to all high techs. The sell off may also continue through the first week of January (I think). But he same people who are selling now will be back by the second week of January in a rush to buy as many shares as they can. Trust me on this, find this a good buying opportunity and dont worry about a point or 2 drop. Big boys who are selling now will be begging for your shares very very soon. Regards, - Addi Jamshidi

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