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

To: High-Tech East who wrote (47978)	3/22/2002 2:46:34 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

Despite my being a fan of McNealy, I think he is a bit disingenuous in his discussion of price/sales. The support for a high price/sales ratio is not in some hypothetical dividend, but in a high and sustained growth rate. JMHO, of course. Charles Tutt (SM)

To: High-Tech East who wrote (47978)	3/22/2002 4:21:32 PM
From: cfimx	Respond to of 64865

>>A: No, she trained me well, and the stock made a nice move since we got married. But two years ago we were selling at 10 times revenues when we were at $64. At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now, having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don't need any transparency. You don't need any footnotes. What were you thinking? How disengenuous. SUNCOM was doing nothing buy PUMPING when the price was @ $64. Just go back and review the records.