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Technology Stocks : All About Sun Microsystems

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To: Christopher who wrote (11652)11/11/1998 6:16:00 PM
From: Xpiderman  Read Replies (3) of 64865
 
Chris, your bold prediction of $73 by TA is well supported by SUNW's
FA number.

Currently, SUNW has a 12 month trailing P/E of 26.3, and a 12 month
forward P/E of 21.9.

As you can see in the table below, a P/E of 21.9 is about in the
middle of the historical P/E range. One can even argue that SUNW
could trade as high as $83 without breaking its historical P/E range.

SUNW

92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00

Sep $0.01 $0.04 $0.10 $0.21 $0.32 $0.41 $0.50* 0.62
Dec $0.08 $0.12 $0.21 $0.33 $0.46 $0.57 $0.66 0.79
Mar $0.12 $0.15 $0.28 $0.37 $0.51 $0.59 $0.69 0.80
Jun $0.18 $0.20 $0.31 $0.43 $0.61 $0.73 $0.91 1.04

Year $0.39 $0.51 $0.90 $1.34 $1.90 $2.30 $2.76 $3.25
Yr./Yr n/a 30.8% 76.5% 48.9% 41.8% 21.1% 20.0% 17.8%

*Last EPS report.

Historical P/E Range:

High 25 31 18 25 28 29 25
Low 11 12 9 10 15 15 16

Based on today's general market P/E and SUNW's consistent
earning growth, I think SINW deserve much higher P/E multiple.

Chris, you did a good TA prediction, keep it up.

XyZ
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