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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (73335)	12/6/1999 3:56:00 PM
From: rudedog	Read Replies (4) \| Respond to of 97611

Jim - SUNW is in some ways like DELL was in January - although their underlying business is good, their stock price has gotten way ahead of their ability to grow the business, and they will eventually trade in a range until the reality catches up with perception. Although they are no where near as well managed or nimble as DELL. They have a high cost structure and little ability to change market segment. Having said that, I don't know when the peak will come - they are riding a tidal wave of PR with little basis in sales or market potential. SUNW would sure have been a good buy any time in the last couple of months. I would not get on board on either side at the moment - too little fizz left to go long, too much uncertainty about market perception vs. reality to go short. I think there will come a point sometime in the next few months when the pattern for 2000 will become apparent. If I were holding SUNW now, I would be watching for a good opportunity to sell covered calls. Or maybe I'd just take the money and run...