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


To: Tecinvestor who wrote (23990)12/4/1999 11:11:00 AM
From: Lynn  Read Replies (3) | Respond to of 64865
 
Thread: Could someone please provide some commentary of SUNW's price based on price/sales? Reading the ML report, they base their target on a PE but I'm wondering [and really do not know] if evaluating SUNW from a price/sales angle not only makes SUNW look reasonably priced right now but shows a lot of room for upward movement.

This question is based on the bottom of the chart I generated while fooling around to see how some of the stocks I hold have appreciated recently. Going to the bottom of the page, past the actual chart, I noted the price/sales. Since SUNW's price/sales looked rather low in the group, I redid the chart adding two stocks I do not hold to the chart, MSFT and INTC. INTC was added because it and STM are in the same industry. MSFT was added only because it is another "big name" and has not done that well lately. Also, I really could not think of which company to best compare SUNW.

Here's the chart with the information I am asking about at the bottom:

techstocks.com

The ML 'Buy/Buy' report notes that SUNW's, "Risks next year include product transition, a revitalized IBM and HP, and Windows 2000. But Sun sees a windfall in moving traditional companies onto the Internet." For price/sales, IBM = 2.1, HWP = 2.3, and MSFT = 22.9 (in above chart) but I just do not view any of these companies as clonish enough for sales/price comparison.

Any replies that can help me understand the significance of price/sales in general of specifically, for evaluating our SUNW, will be greatly appreciated.

Regards,

Lynn