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

To: cheryl williamson who wrote (42241)	3/21/2001 6:08:31 PM
From: uu	Read Replies (2) \| Respond to of 64865

> How do YOU know that "most" of the servers sold by Sun to .coms aren't "even out of the box yet"??? Are you a Sun sales manager??? I am not a Sun sales manager, but I think I know what is going on with Sun's business model which was fueled by the .com phenomenon. Servers are not being sold off in the open market but are being taken as collateral by those that host services and servers (the likes of Exodus) as .coms are unable to pay their bills. As for Sun's profits going through the roof last year, well yes. But all of that profit was due to .com's and the side effects they had on a vareity of related industries (including the telecommunication industry) getting free money from the venture capitalists. Sun's profits can not possibly go through the roof like that for quite sometime unless of course there is a revival in the .com concept (or something similar to that). As .com's fail their servers become available to the market. think of it sort of having too many 36" TVs in the market. If you are in the market to buy a 36" TV, and find that someone is selling practically a brand new 36" TV (1 year old at most) at half the price of a brand new one, would you not consider buying that used 36" TV, than buyiing a brand new one?! And the problem at this time is that there are too many 36" TVs in the market and not that many who want (or need) 36" TVs in their living rooms. > Now Sun is shipping USIII's who is going to buy all those used USII's w/no support or service???? I doubt very much many people are standing in line to buy the USIII's! The product will sell, but at a reasonable growth rate of single digit. Dont get me wrong, I am a SUNW share holder, but at the same time I am being realistic about expectations, and also I think I know what is happening with their business model. This is not 1997, this is 2001 with no new business model (as the .com's ) emerging. It is going to be growth in the single digit to at most teens, and the stock will eventually respond to that (at best $35/shr for the next 18-24 months). Regards,