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

To: techtonicbull who wrote (31009)	4/16/2000 10:30:00 PM
From: techtonicbull	Read Replies (1) \| Respond to of 64865

By the way, a drop to NASDQ 2500 represents a 25% drop from Friday's close which will bring the average back to where it was at the third quarter of 1999. With all the cash that SUNW has in its coffers as well as the business it has developed since the 3rd quarter of 1999, the value in the shares will be "icredulous" IMHO.

To: techtonicbull who wrote (31009)	4/16/2000 10:51:00 PM
From: E_K_S	Respond to of 64865

Hi Techtonicbull - Do you currently own any SUNW now? Where were you last year or two years ago? Sunw's current price is equivalent to where it was on 08/26/99. The big gains are made through a buy and hold strategy, IMO, if you believe management will continue to deliver growth. Is the current price of a 60 PE (forward PE) a bargain price? Sometimes investors can get too caught up in the day to day price changes in the stock and in the general indexes. An approach I take is to simply cost average into a company at a price level that I feel is fair. If you currently do not have a position, this week may be an excellent time to begin to accumulate one. I guess I am pretty lucky as I have established my position over the last several years where the PE was 20. The company had a previous track record of growing their business at 20% per year. Now the expected growth is in the 30%-40% range. The stock has traded as high as 2-2.5 times its growth rate (or a PEG ratio of 2 or 2.5). I calculate the current PEG at around 1.5-1.8. What's your expected holding period? I continue to hold with a three to five year target (or longer) as long as management continues to deliver their stated growth target of 25%. I will buy more only if the stock trades at a PEG of 1 or less or around $56-$60. EKS