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

To: JDN who wrote (29219)	3/21/2000 12:18:00 PM
From: Steve Lee	Read Replies (2) \| Respond to of 64865

My "overvalued" scenario assumes that investors, including yourself, have already decided that SUNW will have an excellent quarter. So if they do there is little upside, and if they don't, there is downside. I see no reason for SUNW to disappoint as their sales right now are going strong. The problems, I believe, will start showing later this year when Sun comes under pressure from customers asking why solutions from Sun cost so much compared to apparently equivalent solutions from other vendors. SUNW can maintain revenue growth from other high margin ventures but these are not going to ramp sufficiently until earnings have already been hit from price pressure in their main product offerings. During that gap in earnings growth, this 100+ PE stock is going to get a haircut.