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

To: Dennis who wrote (39926)	12/31/2000 4:29:10 PM
From: JDN	Read Replies (1) \| Respond to of 64865

Dear Dennis: In this market it is dangerous to give advice, but if I had a big cash position I would begin to dribble it into the market in large, well known respected companies. EMC and SUNW certainly fit that scenario. EMC's target market is I think the 1,000 largest companies in the World, (although with their new cheaper stuff they are probably broadening that), IMHO SUNW target market is broader and goes further down the size bracket. I presume you have read Ken's posts, just in case he is correct I wouldnt dump it all in at once in anyone. JDN

To: Dennis who wrote (39926)	12/31/2000 4:35:48 PM
From: E_K_S	Read Replies (1) \| Respond to of 64865

Hi Dennis - What about some IBM too? I also want to spread some capital around this sector and really do not want to buy anymore SUNW right now. IBM's price has retraced a bit and they always rank as one of the top five companies in market share for several of these emerging technologies. IBM is also very diversified and if they stumble in one area it really will not affect their overall company performance. Finally, IBM has great R&D. They were one of the first companies to develop high density, compact (small), hard drives that leap frogged the current industry standard. However, I would not pay more than 20 PE for IBM as I do not think their future growth rate will be that of SUNW in the next five years. At the current price of $85, IBM trades at 16.8 times next years earnings of $5.05/share. You also get a dividend of $0.52/share. Based on their five year price history, an ugly bear NAZ market might allow you to pick up shares in the mid $50's. As for SUNW's current valuation, IMO I still think it is too high based on the current Tech valuation environment. A PE between 20-30 would be a BUY which is equivalent to a stock priced in the range of $18-$26 based on next year's earnings estimate of $0.88/share. Since I already own a lot of SUNW with an average cost basis of around $5.00/share, I might look at adding to my position if SUNW ever trades back to the high teens. EKS