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

To: _scar_face_ who wrote (48484)	4/21/2002 6:48:52 PM
From: Just_Observing	Read Replies (1) \| Respond to of 64865

RE: What's your view of valuation on sunw I think Sun could move up to $12 to $14 by July. Positive Factors: 1. HWP and CPQ confusion benefits Sun 2. Sun gaining share in storage. 3. Should have Cu 1050 chips in quantity soon which provide dramatically improved performance with just 17% increase in speed 4. Dramatic increases in operating margins 5. Reduction of 1000 jobs in 6 to 9 months reducing expenses by $100 to $120 million a year. 6 Estimated Cash flow of $0.52 per share next year. This should help with share buybacks. Sun did buy $100 million of stock last quarter. 7. Will start charging for StarOffice to be released in May. MSFT's new licensing strategy should help Sunw (90% of those surveyed did not like it). 8. IBM losing a bit of credibility and a big chunk of market cap during the last quarter makes it somewhat less of a threat. 9. Sun should have some Linux boxes out by June. 10. Increased military spending should benefit Sun (along with other software and hardware vendors). 11. Management realized that they were not utilizing their software assets well. Improved focus should help here. 12. Dollar should weaken over the next 6 months helping Sun's overseas revenues and margins. 13. Solaris 9.0 to be released soon. Negative Factors 1. MSFT with still growing amounts of money to go after Sunw. 2. INTC may be somewhat more of a threat in the next 6 months if Itanium meets targets. 3. IT spending may remain weak. 4. IBM in the high-end UNIX market is a bigger threat than it has been in years.