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

To: Mephisto who wrote (27003)	1/31/2000 8:05:00 AM
From: nihil	Read Replies (3) \| Respond to of 64865

The better could sell 100 shares short and guarantee himself against a loss. He could also buy 50 shares of SUNW and receive one half of the gain. The value of the bet that Tech is asking him to give up is 50 shares of SUNW short. The expected value of the bet to Tech is that of buying 50 shares of SUNW. He is asking the better to give him a present value of $3700. I think that is a dumb (or crooked) thing to ask. I didn't mean to insult Tech, but I thought his bet was ridiculous. At least the Japanese brokers were making commissions by selling stock with a loss guarantee. I don't know why Tech would want to guarantee someone against loss except to take part of their gain. I own a lot of SUNW (for me) -- maybe 2% of my portfolio, but it is 80% hedged with long-term deep in the money LEAPs calls each with a huge premium. I am guaranteed a 15% p.a. return on these is SUNW continues to grow, but if it staggers, readjusts to a well-deserved P/E of 25 or so, I will be much better off. I think SUNW is incredibly overvalued. It's revenue growth is poor and its cost-effectiveness is low, and I think there is a distinct possibility that it will be overthrown when Itanium and Itanium II hits the street in volume, running all flavors of Unix and Linux. This will be a large server era of everyone cooperating versus SUNW. Where's the Ultra SPARC III? McNealy, in my opinion, is a windbag who has bitten off a lot more than he can chew. It is incredibly dangerous to talk a company's stock up ahead of itself. I like the company, but I think it is dangerously overexposed, and could easily take a dip of 50% or more (which is why I am mostly hedged.) If he is so satisfied, why is your husband awaiting for Solaris 8. What's wrong with 7?