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


To: techtonicbull who wrote (44382)8/10/2001 12:40:42 AM
From: Vikas Deolaliker  Respond to of 64865
 
I disagree, disagree, disagree.

The stock market does not care for today's earnings, it cares for future earnings which are dependent upon certain uncertainties (risks) which the company takes today. Stock market discounts the future earnings based on a rate (probability that these earnings will happen) to arrive a price today. It is all speculation, when the speculation is not in favor of investors they dump the stock. The proxy for this call on their speculation is earnings.

Look at this another way, how many $ have you received in dividend from SUNW. Earnings are all retained and not distributed. If it is earnings that you look for in a stock then you should not be investing in SUNW at all. You invest because you expect SUNW's capitalization to increase, which is based entirely on future earnings. Any thing in the future is speculative.

Vikas