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


To: Elroy who wrote (50591)7/23/2002 1:36:46 AM
From: 10K a day  Respond to of 64865
 
i think this whole market is so damn fragmented it drive me freakin' nuts....i got a cgi website i'm trying to move that i had on two korn shell sites (for 2 years)..to a linux...wiggy freeware bash site...and the commands just don't exist..and none of my scripts worked that worked on a old...HP ...like 7500 or something...and it's drivin' me absolutely crazy...I got no time to redo a site that took me 2 years to put together...but anyway...that's my beef and i'm stinkin' to it....



To: Elroy who wrote (50591)7/23/2002 2:26:05 AM
From: technologiste  Respond to of 64865
 
Gross margins indicate a company's pricing policy. Taken alone, gross margins are of little help in evaluating a company's attractiveness as an investment, or the soundness of its business. Gross gross margins more effectively measure the willngness (and number) of customers willing to pay a certain price for a company's product, and give far less indication of the value, measured in competive terms, of the product delivered.

If a company with 40% gross margins cannot bring in enough revenue to earn meaningful profits, then it's clear that the company's products are simply not competitively priced. A company's decision to sell its products with such high margins in the face of certain losses – rather than being enviable – suggests perhaps a certain level of arrogance, an unsettling disconnection from market realities, a half-hearted effort in delivering profits to its shareholders, or some combination of all three.

A profitable computer hardware company like Apple with 27% (or even Dell with 17%) gross margins frankly makes (in my view) a more attractive investment proposition than Sun, since the competitive pressure on those margins is likely to be lower. And even with the lower margins, those two companies can deliver its shareholders profits.

There will always be some customers who will overpay for any product. But as the bankrupt telecoms and the defunct dot.coms illustrate, companies that don't pay attention to their costs, who don't "shop before they buy", usually give way in the economic landscape to those companies that pay more attention to their bottom line.