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

To: Bob Kim who wrote (39056)	12/12/2000 1:51:00 PM
From: The Ox	Read Replies (3) \| Respond to of 64865

Hi Bob, Thanks for the update on the ML Techfolio change. Very curious if you ask me but ML decisions are often a curiosity to me<gg>! Some financial information that seems to be getting lost in the downgrades. Revenue growth FY98 to 99 = 20.% FY99 to 00 = 33.1% The past few years, Q1 revenue has been significantly lower than the previous Q4, (down 11% in Q100 and down 13% in Q199) but this year, Q101 was 0.5% HIGHER than Q400. One should make note of the fact that if Q201 revenues are flat with Q1 (well below current guidance), the year over year revenue growth in Q2 would still be in the 43% range! I suspect this number will be closer to the growth rate showed in Q101 of 60% over the previous year. The past 2 years, Q2 revenues have averaged 12% higher than Q1 and if this were to hold true this year, Q2 revenue will be in the $5650MM range (I believe guidance is currently lower coming from the company). I suppose the key here is that the revenue growth is still ramping UPWARD. Many continue to argue that the P/E is out of line and I understand the basis to their point of view. The question that isn't being answered is what premium, if any, should be given to a company that is showing significant financial improvement under the current environment? Those who say that the growth rate should be equal or less than the P/E are missing the financial strength being shown by SUNW.