I am worried about Sun. The stock I bought, which I was comfortable with, had rapid earnings growth and a low PEG.
Now Sun's earnings growth has slowed (relative to 1996) and the PEG is going through the roof. Moreover, raw multiple expansion has led SUNW to make up 55% (!) of my total portfolio.
I have always shunned high flyers such as Amazon, Cisco, Yahoo, RealNetworks, and Microsoft. I liked Sun because it flew below the hype radar and was generally unknown to consumers.
Now, unfortunately, Sun is in the process of being discovered as an Internet "player," and my comfort stock is disappearing.
I'm torn between fear and greed. I want badly to take some profits and diversify, but I worry about "pulling my flowers and watering my weeds" (to use Peter Lynch's phrase).
I have owned SUNW since April of 1995, and it has been an eight-bagger for me.
What should I do??
-Alex |
