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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: hoyasaxa who wrote (17101)	6/14/1999 12:06:00 PM
From: Marvin Mansky	Read Replies (1) \| Respond to of 64865

I suggest that you contact Andy Neff at Bear Stearns. He will fill you in on those numbers. I've read his analysis as well as Steve Millunovich at ML, and come to the conclusion SUNW is a "BUY".

To: hoyasaxa who wrote (17101)	6/15/1999 9:27:00 PM
From: Marvin Mansky	Respond to of 64865

HOYASAXA Please read this post as to why SUNW is a BUY: ALSO IF you want more IN-DEPTH information, call the following Bear Stearns analysts: Andrew J. Neff (212) 272-4247 June 15,1999 aneff@bear.com Shaw Wu (212) 272-5928 swu@bear.com William Bao Bean (212) 272-6915 wbean@bear.com Subject: Industry: Enterprise Wide Servers BEAR, STEARNS & CO. INC. EQUITY RESEARCH Sun Microsystems, Inc. (SUNW 59.375) - Buy Virtual Conference: Quarter On Track, That Vision Thing; Maintain Buy ______________________________________________________________________________ Data Shares Out 823.5 Market Cap(MM) $48,895 ______________________________________________________________________________ Key Points * As part of our Virtual Conference, Sun CEO McNealy highlighted growth prospects, strong demand, and its competitive advantage. * We view negative publicity from eBay outage (attributed to Sun's software) and Microsoft's backing of Java clone maker as temporary -- but near-term negative -- issues. * To listen to the replay of the Sun call, dial 888-841-3475 or 402-220-9142 * We would view current weakness as an opportunity and continue to rate the stock as a buy -- we think that Sun's vision as the supplier of IT infrastructure to the applications services players is compelling ______________________________________________________________________________ Earning Estimates P/E Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Year 1999 0.25 0.34 0.35 0.46 1.40 42.4x 2000 0.29 0.38 0.41 0.57 1.65 36.0x 2001 0.36 0.47 0.51 0.66 2.00 29.7x ______________________________________________________________________________ * Key Points. Yesterday (6/14/99), at the Bear Stearns "Virtual Computer Conference", Sun Microsystems CEO Scott McNealy offered some of his views on the competitive trends and emerging opportunities in the computer industry, and specifically on how Sun Micro is well-positioned to take advantage of this growth trends. Our key take-aways from his keynote address are: Well-Positioned. We are confident as ever that Sun is one of the most well- positioned companies to capitalize on the growth of the Internet with accelerating e-commerce and telecom infrastructure spending. This shift to dot.com will require more fault-tolerant and more robust servers, which plays into Sun's strengths in its Solaris OS, Ultra-SPARC architecture, and interoperability with Java, Jini, and Project Cascade. Quarter Appears on Track. The upcoming 4Q99 (June) quarter appears on track, we are looking for $0.46 vs. $0.36 (also the First Call average) on top of 19% revenue growth to $3.4 billion - we believe this estimate may turn out to be conservative owing to the strong momentum in the U.S. and Japan from ISPs (Internet Service Providers) and Telecom companies due to Sun's stronger focus on these highest growth markets. eBay, Transvirtual Not Significant Issues. While there was concern about the role of Sun's Solaris software in the eBay outage along with word of Microsoft's backing of Transvirtual, a Java clone developer, we would view these as short-term distractions. Maintaining Estimates. We are maintaining our estimates of $1.65 for FY2000 and $2.00 for FY2001. Continue to Rate Buy. We continue to rate Sun Micro a Buy to reflect our belief that the company remains one of the best ways to play the explosive growth of enterprise servers, e-commerce, and server consolidation. We believe the company's strong fundamentals remain intact with the prospect of further upside surprises owing to favorable demand trends. We view the current weakness in the stock as an opportunity to add to positions. * The Vision Thing. Scott also spent some time on Sun's vision and strategy. We believe his vision of Sun as the dot.com infrastructure supplier of choice highlights our thesis that one of Sun's key strengths is its ability to leverage off its technology portfolio of software and hardware to create new market opportunities and applications that drive further growth. For example, Java and Jini as stand-alone units may not appear to contribute to Sun's top and bottom lines, however, they have been key to Sun in gaining new customers and entering new market segments. We have seen this recently as Sun has penetrated into the data center and telco central office markets with its "write-once, run anywhere" Java and its fault-tolerance server technology. In the future, we believe Java and Jini have potential to become significant contributors as the technologies become more widely deployed in clients, servers, alternative computing devices, and embedded applications like set-top boxes, cell phones, and smart cards. *** To Listen To the Replay. To listen to the replay of Scott McNealy's keynote, the replay number is 888-841-3475 or 402-220-9142. First Call Corporation - all rights reserved. 617/345-2500 END OF NOTE