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Technology Stocks : All About Sun Microsystems

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To: uu who wrote (274)1/20/1997 12:46:00 PM
From: Equinox   of 64865
 
Addi -
I agree with your assessment of the reasons that SUNW didn't skyrocket. I have come to understand that a stock's volatility is directly related to it's risk, so that when a stock behaves less than 'exuberently' on good news, it reflects maturation in the company, and a more secure, yet growing, investment. An extreme example of this is the fact that INTC actually went DOWN after their tremendous recent news, implying an outstanding investment based on risk.

The idea that volatility is directly related to risk is not mine, but obtained from Bernstein's recent book entitled 'Beating the Gods . . ' which I'd recommend very highly to the group.

Eq
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