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

To: High-Tech East who wrote (42195)	3/21/2001 3:16:48 AM
From: Jacques Newey	Read Replies (1) \| Respond to of 64865

Ken, great post! You are right on the money. The accounting shenanigans you highlight have not yet been priced into most of these companies. The analysts and individual investors are ignorant for the most part. The focus has been only on stock price (i.e. Company X is down 75% from its high, it must be undervalued) and unrealistic expectations of (managed) earnings growth. For the reasons you give, the tech correction will be a protracted one. Institutions/individuals will continue to buy on the dips. Air will slowly be let out of the tech valuation balloon as the issues you raise come to light. It will be many years before the balloon inflates back to where it was in early 2000.

To: High-Tech East who wrote (42195)	3/21/2001 5:09:37 AM
From: JDN	Respond to of 64865

Dear Ken: I didnt mean to USE THEM (heaven forbid) merely to sell them. (gg) Regarding your letter, I hate to have to tell you this but I was one of the PROTESTORS on the Pooling arguement (point #1). So long as it can be established that the revalued assets are WORTH what was paid, I saw no reason to arbitrarily cause them to be written down. Point #2 (stock options) I agree wholeheartedly. There is little doubt in MY MIND that stock options have been ABUSED in the world of technology. Whole thing started when techs were in their infancy and could not AFFORD to pay CASH for the expertise they needed. From there it BLOSSOMED to every swinging dick getting them PLUS the big salary. Then often they dont even HOLD the shares. So I agree. Point #3 (stock buybacks) when done by REPUTABLE, RESPONSIBLE companies are not such a bad thing. The examples in that letter would be done by disreputable, unresponsable management. So, I think its not really such a big deal. JDN