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

To: Michael F. Donadio who wrote (36045)	10/3/2000 10:40:52 AM
From: High-Tech East	Read Replies (2) \| Respond to of 64865

Michael - the problems with owning Sun Microsystems today is not about the future of Sun's business now, in six months, a year or five years ... or even how great a company it is and how big the internet will be in the future (although if they can report for Q1 what they did for Q4 in July as well as say as many wonderful things about the future, maybe the stock price will not suffer to 70 to 90 pre-split) ... ... the problems are of a macro economic nature (1) the impact of all the Fed rate increases together are just starting to be felt, (2) spending by telcos are questionable for the next several quarters at least, (3) energy prices are a serious problem, (4) the value of the "euro" is a big issue for all companies doing business in Europe (especially SUNW), (5) the trade deficit is a large problem (especially for the value of the dollar) and (6) SUNW has a gigantic P/E and could have major valuation problems in what I judge to be the beginnings of a major correction and possibly bear market ... ... the U.S. economy (and therefore the world economy) has a strong possibility of being in recession in 2001 (maybe early 2001) ... Disclaimer: The above is my personal opinion. I recommend that you do not base your investment decisions solely on any one person's views or analysis (including mine). Do your own research and take personal responsibility for your investment decisions. Ken Wilson