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

To: JDN who wrote (43695)	6/7/2001 9:03:38 AM
From: techtonicbull	Respond to of 64865

$35 by year end IMO. I look for server sales to pick up comparitavely better fro Sun vis-a-vis IBM and HP Dell & CPQ because of the total H/S package Sun presents will be seen to be what corporations want "Stack" is the McNealy new key word. You know if macro improves >$35 may be possible by X-Mas.

To: JDN who wrote (43695)	6/7/2001 9:33:10 AM
From: Bill Fischofer	Read Replies (2) \| Respond to of 64865

Look to Storage if you want to know the future In the enterprise space the relative growth rates of storage dwarf processing growth. This growth already dominates and will soon represent the overwhelmingly dominant share of corporate IT spending. So if you want to project SUNW's future growth rates stop focusing on processing and instead focus on storage. This is why SUNW's main competitive threat has always been EMC, not Wintel. As we move further into the post-server era processing simply becomes less important as a sales differentiator. It is no longer the center of corporate IT strategy and hence the "Wintel threat" is not so much that Wintel gets better as that the category (central processing) is marginalized and this leads to commoditization. This is why all the fuss over USIII vs. Power4 vs. Itanium here is misplaced. MIPS is the new commodity and the real value (and margins) will lie elsewhere. Itanium will inherit this space not because of its superior architecture or any other lofty virtue, but simply because INTC can crank out commodity MIPS cheaper than anyone else thanks to their huge volumes and economies of scale.

To: JDN who wrote (43695)	6/7/2001 10:38:10 AM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

All good questions. I'm starting to leverage up again, although cautiously, with the expectation that the Fed's easing will inexorably boost the economy -- hopefully by year end. I think traffic on the Internet probably is continuing to rise, so needed capacity increases are merely being delayed to create pent-up demand. If that's the case, the longer we crawl along the bottom, the more vigorous the recovery might be -- wait long enough and at some point the flood gates will open of necessity. Possible dangers include that the rest of the world could slump or war could break out somewhere. Didn't Sun sign an alternate supplier for SPARCs some months ago? Presumably chips will begin to appear from that source eventually. I believe they said in the recent conference call that they're still having trouble getting all the chips they could sell. Despite the horrible stock performance the past 9 months, SUNW has been a pretty good performer if viewed over a longer time frame. Call me a fool, but I'm confident it will get back on track one of these days/months. All JMHO, and not investment advice. Charles Tutt (TM)