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

To: Charles Tutt who wrote (39130)	12/13/2000 1:19:31 PM
From: Eski	Respond to of 64865

Investing in this dog good luck you'll need it.

To: Charles Tutt who wrote (39130)	12/13/2000 1:26:36 PM
From: Tony Viola	Read Replies (1) \| Respond to of 64865

Here come the bears. This was a good thread, like Cisco was once. Nothing against bears, except for some reason they seem to be light on the neurons, at least the ones that inflict SI. Tony

To: Charles Tutt who wrote (39130)	12/13/2000 1:35:06 PM
From: Steve Lee	Read Replies (5) \| Respond to of 64865

Still a good trading stock, hell it moved in more than a 10% range so far today. I have an inkling this stock will drop another 25% from here within the next few months. Come on, flame me! Reasoning is based on the more sensible valuations coming into play. There are many good stocks that trade at a PE lower than their growth rate. SUNW is still overvalued by that metric. JC you can ask what a PE is but SUNW still drops for exactly this reason. I thought it would bounce temporarily from recent levels but the continued falling on v. high volume proves the support is no longer there. This is a broken stock. If SSTI has a current PE of 8 and a growth rate of 300%, what PE does SUNW with its 30% growth rate deserve? OK the semis which SSTI is classed in with are going through a rough spot, but so are the computing stocks. SUNW is more susceptible to the commoditisation woes of the computer market than SSTI is to the similar worries for the semis. I have no position in SUNW and think the company is good and the management are talented and honest. I think it is overvalued. I expect it will challenge its old highs at some point but that may be a couple of years away. Some of you dream of SUNW doubling every 9 months or so. Truth is you are not gonna get a 5 bagger out of this, probably in most of your lifetimes. To increase fivefold SUNW would need monopoly power, something that only the likes of MSFT or INTC have come near. Truth is, while Sun products may or may not be better than Linux/IBM/Wintel/HP/Compaq etc, any company can, if they choose, run their entire organisation without Sun's products. That means Sun may be a leader, but they are still subject to competition. As Compaq and IBM etc suffer in their markets, so must Sun. Any niche Sun finds, will be invaded by these other hungry companies. As an example, Intel can't grow anymore with their old products so they come up with Itanium which will compete directly with UltraSparc.