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

To: JDN who wrote (47398)	2/15/2002 9:21:28 AM
From: alydar	Respond to of 64865

<<Public confidence in the market appears to have waned>> imo, thats when you buy. rocky.

To: JDN who wrote (47398)	2/15/2002 11:41:05 AM
From: techtonicbull	Read Replies (1) \| Respond to of 64865

Q: Sun Microsystems (NasdaqNM:SUNW) at $9 and change sounds like a great buy. What's your opinion? A: We, in fact, do have a 5-STAR [buy] ranking [in S&P's Stock Appreciation Ranking System] on Sun Microsystems...they are targeting a double-digit operating margin and plan to do stock buybacks...margins should improve materially in the near term, based on Web-based efficiencies and better product mix and component costs. S&P

To: JDN who wrote (47398)	2/15/2002 1:37:37 PM
From: Scott Meyer	Read Replies (2) \| Respond to of 64865

Perhaps because they are not so great anymore Look at the revenue from the latest 10Q: 3.1B off 2B from the year-ago period. The question that investors are asking is "Where is an extra billion dollars per quarter going to come from?" That is what is required in order to support the current stock price given the same constants of valuation that seemed to apply throughout most of the 90s. If you want the stock to go up, you have to find an answer to this question - or convince the entire baby boom generation that value doesn't matter again. I don't think that the aughts are going to play out the same way as the 90's. In fact, I think that Sun is going through something like what IBM went through in the 80s. For a long time "IBM" was synonymous with "computer" and that resulted in people buying mainframes for things that they really weren't cost effective for. I think that Sun has been in a similar situation with the Internet, and, I think that as people slow down and start using the internet as a business tool - paying attention to cost - Sun is going to hurt for a while. I don't think that they're going to crater because the need for big SMP servers isn't going to go away, but for many internet applications clustering lots of cheap standard PCs is going to be more cost effective. Even if Sun becomes a major player in the cluster market, they're not going to be seeing the same sort of margin that they make off of SMP servers. This isn't media hype. In fact, I haven't read any media coverage to this effect which is one of the reasons I based my investing on this idea. Anything that has received media coverage is already priced in.