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

To: Steve Lee who wrote (48177)	4/10/2002 2:59:27 PM
From: Bald Eagle	Read Replies (2) \| Respond to of 64865

RE:SUNW has achieved less than a third of CPQ EPS in the last 4 quarters According to the numbers here on SI, SUNW had 52 cents EPS and CPQ had 19 cents. That's more than double, not less than 1/3. Also, that was on much less than half the revenue of CPQ and the five year revenue growth rate for SUNW is a little higher than CPQ.

To: Steve Lee who wrote (48177)	4/12/2002 7:16:55 AM
From: Charles Tutt	Read Replies (2) \| Respond to of 64865

Consider this. If Sun break even is at about $3B/Q and they can somehow (economic recovery, new markets, new products, defense spending, capture of additional market share from IBM, Hewpaq, etc.) boost revenues back to the $5B/Q they actually did a few quarters ago, then at an incremental margin of 50% they'd have EPS in the neighborhood of .30/Q. Annualize that and apply a PE of, say, 35 (interest rates are still low) and you could be looking at a fairly nice return. JMHO, of course, and not intended as investment advice. Charles Tutt (SM)