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To: GVTucker who wrote (114408)	10/18/2000 6:04:45 PM
From: THE WATSONYOUTH	Read Replies (1) \| Respond to of 186894

Translated, I think that this earnings report might signal the end of SUNW's exemption from the market's new found love for valuation. There's nothing necessarily bad here. There's just a few code words--things like net income growing slower than revenues, orders rising slower than revenues. In end, heck, I dunno, it just feels like it. I agree. The competition will step up big time from here. Their margins will be under relentless pressure. This may be the last year for hyper growth. THE WATSONYOUTH

To: GVTucker who wrote (114408)	10/18/2000 7:16:15 PM
From: rudedog	Read Replies (2) \| Respond to of 186894

GV - I got the same feeling. I have been selling off my SUNW LEAPs over the past few months on any tick close to the 120 range, and over the last week have been buying into calls in CPQ, DELL, INTC, and MSFT. I don't really know why either - although the sequential numbers in SUNW's report did not look too exciting in terms of momentum, no matter how much lipstick they put on the pig. I'm not expecting SUNW to crater or anything like that but I do expect it to stay kind of in its current range - until they make a mistake. I had the same feeling about DELL starting about 18 months ago, and I reduced my position my more than 70% when the stock was in the high 40s. I had some reasoning for that but it was as much gut feel, and the things I saw DELL management saying, their body language... DELL was still executing brilliantly at that time, as SUNW is now. But their stock price DEMANDED perfect performance, and that is a hard act to keep up.