Can you say growth? The growth of these 3 companies, CPQ, HWP and SUNW don't equal to CSCO. That's the reason the street values CSCO at such a high premium. Now, about whether to own the other 3 vs. CSCO, I would probably go with the other 3 companies. I don't think too much of CPQ, never like that DEC acquisition they did last year. HWP got a terrible execution track record. But SUNW would be a stock that I would love to own.
In my humble opinion, both CSCO and SUNW are the premium "Internet Infrastructure" play, they are much better and safer than the Internet pure play. Out of this two, CSCO has a higher growth, but SUNW might not lack behind, because almost all of its values are only in its servers business. They are expending their horizons in E-Commerce, Home Electronics with Java, Enterprise storage, future alliance with INTC to strategically port Solaris onto native Intel architecture, introducing SUN PCI card to run NT / Solaris application seemlessly on the same Solaris box. Plus, their Solaris system is way more reliable, scalable than the much delayed Windows 2000. And they are entering into the sub $5000 servers world. I see a lot of good things happening in SUNW and that's why my pre-split price of $39/share of SUNW almost quadriple in less than a year. And it still has a long way to go up. SUNW is the primary reason I would want to own the other 3 vs. CSCO. |
