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

To: Jill who wrote (22561)	11/8/1999 10:15:00 AM
From: JC Jaros	Read Replies (1) \| Respond to of 64865

Any thots? Yes, Jill. About 1,000 on this thread since 1997! :) If you want to know an entry point though, the best way is to watch what Charles Tutt does, although he may be getting to the point like me, where any more SUNW shares risks a 'conservator' action by the state. Other than that, there's twister. You can pretty much do well by buying SUNW on the days where twister is loudest on this thread. I know it sounds whacky but it works. -JCJ

To: Jill who wrote (22561)	11/8/1999 10:33:00 AM
From: Lynn	Read Replies (1) \| Respond to of 64865

I can not give you a good entry price, Jill, but since you are a new follower of SUNW, here's part of ML's research report for SUNW released October 18. At the time of the report SUNW was 92 9/16 and ML's 12 month target was 110. ML rated SUNW a 1 1: 12 Month Price Objective: $110 Estimates (Jun) 1999A 2000E 2001E EPS: $1.42 $1.75 $2.15 P/E: 65.2x 52.9x 43.1x EPS Change (YoY): 28% 27% 24% Consensus EPS: $1.71 $2.16 (First Call: 29-Sep-1999) Q2 EPS (Dec): $0.34 $0.40 Cash Flow/Share: $2.04 $2.59 $3.09 Price/Cash Flow: 45.4x 35.7x 30.0x Dividend Rate: Nil Nil Nil Dividend Yield: Nil Nil Nil Opinion & Financial Data Investment Opinion: B-1-1-9 Mkt. Value / Shares Outstanding (mm): $76,919.4 / 831 Book Value/Share (Sep-1999): $6.16 Price/Book Ratio: 15.0x ROE 2000E Average: 26% LT Liability % of Capital: 27% Est. 5 Year EPS Growth: 25% Stock Data 52-Week Range: $99 7/16-$22 1/8 Symbol / Exchange: SUNW / OTC Options: Pacific Institutional Ownership-Spectrum: 51.2% Brokers Covering (First Call): 19 ML Industry Weightings & Ratings** Strategy; Weighting Rel. to Mkt.: Income: In Line (07-Mar-1995) Growth: In Line (06-Apr-1998) Income & Growth: In Line (06-Apr-1998) Investment Highlights: · The big news is that Y2K does not look to be a problem with better than 20% revenue growth expected in F2Q. · We raised our intermediate term rating on the shares to Buy last quarter and we are still enthusiastic about the company's prospects. We are raising our price objective from $103 to $110, or 56X our C2000 EPS estimate of $1.95. It's a high mulitple, but Sun is less risky near term, in our view. Fundamental Highlights: · Sun had a terrific quarter with EPS of $0.33 on revenue growth of 25%, besting our estimate by two pennies. Orders rose 19% and backlog increased by $133 million despite efforts to reduce it. · Sun is blowing away Unix competitors as mindshare turns into market share. Sun is the default purchase in the Internet era. The company's decision to develop its own intellectual property is paying off as are its vision, focus, and execution. · Risks to Sun include reinvigorated Unix competitors and, more important, the long-term threat from Wintel in the enterprise. Regards, Lynn