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Technology Stocks : All About Sun Microsystems

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To: Byron Xiao who wrote (11662)	11/11/1998 10:45:00 PM
From: Neil Kalton	Read Replies (1) of 64865

Byron, Consider the macroeconomic environment in which SUNW achieved 20% earnings growth in 1997-98 and in which it appears well positioned to achieve 20-25% in 1998-99. There are very few tech companies that have weathered the Asian crisis as well as SUNW has. Also, if the Pacific Rim comes around in late CY 1999 as predicted it is improbable that SUNW will only achieve 17.8% EPS growth in FY 2000. Watch for 2000 EPS estimates to gradually increase over the next year to the 25-30% EPS growth area. Reports of SUNW's impending demise were greatly exaggerated over the last 2-3 years. Contrary to popular belief there is room for MSFT & SUNW to coexist successfully. The Street just now appears to be warming to this concept and, IMO, it will not be long before SUNW commands a premium P/E ratio over EPS growth like the other tech blue chips do (MSFT, DELL, CSCO, LU). The best time to be invested in a stock is during a period of rising earnings estimates and expanding P/E ranges. -nk

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