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

To: Dave who wrote (50459)	7/19/2002 1:49:49 PM
From: cheryl williamson	Read Replies (3) \| Respond to of 64865

I'll tell you what I think Dave. I think it's way too low. Investors are punishing the company because management isn't playing footsie in trying to make the eps look more appealing. (Do you think that may be part of the reason why some corporate execs try to 'cook the books'?) The company is strong, the products are strong, they continue to outpace all comers in the Unix market, the microelectronics business is improving, the storage business is improving, gross margins have fallen, but not that far, and they are proving resiliant by succeeding in non-traditional vertical markets. Hey, things look even worse for Intel. IBM has had big layoffs in R&D and is STILL has a bloated workforce. Sun's earnings-per-employee outpaces IBM by a fair amount. Investors have to realize that there's no money tree in the backyard at Menlo Park and Palo Alto. Sun's management has a company to run and there is a lot to it. Short term profits that require a lot of slash-and-burn isn't going to help them out down the road. There must be some Enron fallout in all of this loss of trust. Not everyone is a crook, and not everyone is simply a slave to greed. C'mon folks, have a little faith.....

To: Dave who wrote (50459)	7/19/2002 1:57:14 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

I'm probably too close to it to say. At this point I'd consider looking at it as a value stock, with perhaps a P/S of 1.5, which would put it (Yahoo! says sales/sh is about $3.83) at about $5.75. Assuming it ever becomes a growth stock again, it could exceed that. I think book is about 3 bucks, and twice book for a value stock doesn't seem excessive to me, which comes to about the same thing. Of course, there's no way to know whether, or by what path, it might get there. Just some thoughts ... BTW, today I bought back some of what I sold a while back. JMHO, of course, and not intended as investment advice. Charles Tutt (SM)