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

To: JDN who wrote (30752)	4/14/2000 9:34:00 AM
From: Lynn	Read Replies (1) \| Respond to of 64865

Dear JDN: Well, maybe you will like Steve Milunovich's (ML) special report on SUNW better: Sun Micro (1-1) Blow-Out Quarter SUNW: B-1-1-9; $80; [qp] Sun handily exceeded expectations in reporting EPS of $0.26 versus our $0.22 estimate on 35% revenue growth for the quarter. Orders were up a stunning 40% with the backlog rising 8% sequentially. Management suggested 25% revenue and slightly slower earnings growth for F2001. We view this as conservative guidance rather than a deceleration in the business. As long as demand remains strong and the mix shift to higher-end product offsets pricing pressure, we will be bullish. Sun is still gaining share from HP and IBM. We learned that sales to dot-coms and service providers combined is just 10% of revenue, suggesting Sun has less exposure to an Internet slowdown than previously thought. The stock is nearing its long-term support and we hope it will stabilize soon. Our $100 price objective is 90X on our C2000 and 70X on our C2001 estimates. Steve Milunovich I expect Steve to generate a longer report on SUNW later, possibly today. The "Intra-day Special Call Bulletin" quoted above appears to have been written for people in Europe: "14 April 2000 European Research." Regards, Lynn