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

To: JDN who wrote (47409)	2/15/2002 1:25:37 PM
From: Steve Lee	Read Replies (1) \| Respond to of 64865

Do you think earnings are going to come back within a couple of years? The consumer retrenchment is only just starting. Off balance sheet debt is being eliminated This will be done very quickly (as in many restatements already). Pro forma is being eliminated thanks to the SEC this will probly be completed by the end of the year. Options liabilities will likely have to be shown as expenses sometime in the next 12 mths, to comply with public pressure for more transparent earnings statements. With these 3 major sources of BS earnings disappearing, where will the artificial earnings and artificial growth come from? Remember the growth at end of nineties wasn't as great as it seemed. Companies were buying smaller companies to perpetuate the earnings scam. You buy a small company and lose the costs in a charge. Then you buy another one and lose the expenses in a charge, whilst allowing the revenues from the first company to make it into the pro forma results. This free accretive revenue scam went on for a long time and is only just deflating in terms of goodwill writedowns etc. The system is so corrupt that it will take much more painful charts to work the markets back to a fair reflcetion of earnings value. These comments are not SUNW specific, but some of the problems definitely are relevant to SUNW.

To: JDN who wrote (47409)	2/15/2002 1:46:02 PM
From: techtonicbull	Respond to of 64865

Painful losses are being taken by the executives at Sun who hold millions of shares. I am not crying for them I must say since they milked out quite a good amount to make anyone a multi-millionaire. However, the loss is so pronounced for them and it's no fun seeing your portfolio go down $35 million in one day. Nasdaq looks so weak for the last couple of years. I do not believe technology will remain out of favor for ever. 2003 will be a big year and 2002 will not see much in the way of gains.