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To: Rick Buskey who wrote (118901)	12/13/2000 2:26:08 PM
From: Dave Gore	Read Replies (3) \| Respond to of 120523

Richard, here's some research info on SUNW; it's down from $120 (i.e. $60 split adjusted in Oct.) and now has a pretty reasonable valuation and is a diversified company with still promising growth rates. I like Scott McNeely a bunch...smart guy. But mostly I like the big drop in value in just the last 3 months. "Sun Microsystem is a leading worldwide provider of products, services and support solutions for building and maintaining network computing environments. The company sells scalable computer systems, high-speed microprocessors, and a complete line of high performance software for operating network computing equipment and storage products. The company also provides a full range of services, including support, education, and professional services. The company products and services command a significant share of the rapidly growing network computing market." For laughs look at the Analyst comments!....LOL Even adjusting them for the 2 for 1 split that occurred recently, they are still great examples of poor analysis. 05-Oct-00 15:00 -- 16:00 ET Sun Microsystems (SUNW) 109 7/16 -2 1/64: Thomas Weisel reiterates BUY rating and price target of $135. Calls issue their best idea in Enterprise Systems & Storage space at the start of Q4. Likes strong business momentum, large market cap and good trading liquidity which firm thinks provide an attractive idea in a choppy market. 03-Oct-00 11:00 -- 12:00 ET Sun Microsystems (SUNW) 113 9/16 unch: ABN AMRO initiates coverage with an OUTPERFORM rating and price target of $140; believes SUNW still has huge market opportunity as traditional corporations and emerging ASPs build out their Internet infrastructures. 26-Sep-00 15:00 -- 16:00 ET Sun Microsystems (SUNW) 118 1/8 +1/8: Merrill Lynch resumes NT BUY/LT BUY rating and price target of $145; says company's momentum in Solaris and first-mover advantage in fastest growing markets should fuel continued share gains. 25-Sep-00 BEFORE THE OPEN Sun Microsys (SUNW) 118 1/16: Announces plans to significantly increase its investment focus on the Asia Pacific region through its newly formed Sun Asia Pacific Venture Investment Program; company is targeting $50 mln of investments through this program; with co-investments from local partners, expects the program to provide $250 mln in total investment capital for the region; see press release.

To: Rick Buskey who wrote (118901)	12/13/2000 4:51:03 PM
From: Lane Hall-Witt	Respond to of 120523

Richard -- SUNW: I think the discounting SUNW has begun to engage in is probably foreshadowing the "commodification" you're talking about here. The Pentium 4 is seen as a particular threat in some circles, because it shows that INTC is working its way up the performance food chain -- which is a sure sign that the mid-range server market is going the way of the low-end server market. SUNW needs a cost-effective processor breakthrough if it wants to keep some distance between itself and the world of the P4. That said, I don't think SUNW is likely to suffer as much as the other box makers, because it really doesn't have the extreme low-end exposure that comes with selling retail. For now at least, the enterprise market seems to be holding together better than the consumer market. Its most intense direct competitors are IBM and HWP, which both have strong offerings in the Unix space, and neither of these companies is eager to destroy the premiums available in the server market by starting a zero-margin pricing war. The real wildcards in the server wars are the P4 and Win2000. Long term, I also like SUNW's potential for diversification: the storage space, Java, Jini, etc., etc. I'm looking to buy a load of SUNW at some point -- I just don't know when. I wouldn't be surprised to see it do what ORCL did a few weeks back, when ORCL kept drifting lower and lower through support level after support level.