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

To: Logain Ablar who wrote (50005)	6/26/2002 7:21:58 PM
From: John Carragher	Respond to of 64865

un Microsystems Sun Microsystems Inc. (SUNW-Nasdaq) By A.G. Edwards (5.48, June 24, 2002) We are downgrading shares of Sun Microsystems from Strong Buy to Hold. We still like Sun's leading position in the Unix server market and see upside to its storage business but are wary of several things. Our channel checks indicate that Sun had a decent April followed by a steep fall in May and only a small rebound in June. Over the next year, we do not see capital-spending picking up significantly. The environment is even more difficult in the high-end where Sun has significant exposure. Sun's mid-quarter conference call suggested that the company's target of attaining profitability in June is more of a stretch. We are in fact modeling for a slight loss this quarter. We are also concerned that almost all senior management executives recently agreed to depart from the company. This includes Ed Zander (President and COO), John Shoemaker (head of servers), Larry Hambly (services) and Michael Lehman (CFO). Managing such heavy turnover on top of continued challenges to Sun's core market will be a challenge. -- Shebly Seyrafi, CFA