That's a very concise, simplistic, and old argument. Maybe Sun should start entering the PC world, it did CPQ/DEC and HP a whole hell of a lot of good. Sun's historic valuation was low because of this age-old argument. People are starting to realize that UNIX is not going away, esp since 75% of the internet runs on Sun equipment. To me, that makes it better than an "internet company". A key internet supplier will be able to maintain margins, have barriers to entry, and ensure future growth correlated with the growth of the internet.
I appreciate dissenting opinions on the board, it makes you think from several angles. However, I've held this stock for years, and I've seen a parade of nay-sayers, all spouting the same argument that never seems to pan out. I need to see some new ones before I tremble in fear.
For at least the foreseeable future, Sun will supply some of the most reliable, fast and scaleable equipment in the industry. All backed by a world-class support organization. It's new ventures into software look very promising, however uncertain at this point.
Revenue this quarter grew faster than that of IBM, or MSFT, will they be cut in half as well? Fortunately, the market values stock on future potential, not hindsight.
Happy Investing
JavaGuy |
