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

To: Sonki who wrote (20359)	9/28/1999 11:41:00 AM
From: Alok Sinha	Read Replies (1) \| Respond to of 64865

Given the treacherous tone of the market, I think SUNW will stabilize in a trading range between 87 and 92 with the price around 90 at the time of expiration. Most of my option positions are based on this price range. There are way too many market factors working aganist the odds of a further breakout on the upside (at least till Oct end). Also the weeks following earnings are usually followed by some profit taking and consolidation (and the run-up from mid 70s to mid 90s has been a straight line up). I expect SUN to be trading over 100 in Jan 2000. Also the trading indicates this is one stock where either the shorts are begining to believe that they have their bets wrong, and trying to cover every time it drops a few points. Also large blocks to buy come in very quickly moving the price up (indicating institutional accumulation). So fundamentally I think we are in good shape even though the PE is a little stretched. Regards Alok