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

To: luther yow who wrote (32296)	5/24/2000 2:35:00 PM
From: Steve Lee	Respond to of 64865

I don't think there is anything "wrong" with SUNW. They will continue to do well and make products that sell. I wasn't trying to group them in with the Amazon's of the world. I do think that they are overvalued fundamentally (even now). This is purely down to their growth rate and already large size. Even if demand for products picks up (which it probably will) and margins increase (which I don't think will happen), the size and logistics of the comapny in terms of bringing new capacity on line limits their growth. So whilst I don't think that SUNW stock will go much lower, I don't expect it to be making new highs anytime soon. If I was long SUNW, I would hold at current levels but look to get out maybe 25% higher if presented with the opportunity in the next couple of quarters. There are still many companies with similar valuation multiples but with much better growth prospects. I hold no positions whatsoever right now, but the stocks I am looking to buy into v. soon are PCMS, GBT, RMBS, ECIL, WSTL & GALT. All of these stand a good chance of doubling or tripling in the next 6 months. SUNW doesn't.