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

To: Sonki who wrote (23043)	11/16/1999 6:58:00 PM
From: Alok Sinha	Read Replies (2) \| Respond to of 64865

Hi Sonki and all, Hope things are going well. SUNW certainly seems to have caught fire lately. I was out of the country the last 4 weeks so haven't kept up with the thread. In a way it was probably for the better since I would have been selling covered calls and losing money if I had seen the upward ascent during late Oct and early Nov. (True to my practice I sold calls Nov 125s and Dec 130s today and bought some Dec 110 puts). IMO there is way too much hot air in the markets right now(I am enjoying the ride up like all longs, esp. since I am overweight in high tech with SUNW my largest holding. I also bought some ENTU Jan 25 calls before leaving for India and it is up 15 fold in a month). The rally may go on for a while, but it may be time to start taking some money of the table (this is also not the first time I have been cautious). Some of the irrational exuberance and cheeleading that has afflicted the Net related threads (e commerce particularly) seems to be spilling over to the SUN thread. The new entrants will scream and holler when they see SUN drop 20 points "apparently for no reason" and complain about the markets unfairly punishing SUN etc. etc. Fundamentally, SUN is no different today than it was when it was at 90 (3 weeks back). For that matter most of the tech sector runup has been largely on sentiment (the long bond yield has dropped, but we are still above 6%)- the multiples have expanded more and more, and it makes me nervous when the divergence between value and price gets to be this extreme. Regards Alok To keep things in perspective, I always remind myself of the saying "Don't confuse bull market with intelligence"