Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: QwikSand who wrote (53476)	3/18/2003 4:52:41 AM
From: QwikSand	Read Replies (2) \| Respond to of 64865

This is a piece of Briefing.com's summary of the Barron's article: Barron's article highlights the rise and decline of Sun Microsystems' stock price and suggests co might be overdue for a bounce in the event of tech turnaround. The Company is currently trading at 0.83x sales and 1.4x book value. Its balance sheet continues to be robust with $3.4 billion in cash, or $1.06 per share in net cash. Now it's not just a piece of it, it's essentially the entire good news. I'm sorry, but that just seems obviously stupid to me. Two-two-two said it: when you talk about a tech company and the emphasis is on the balance sheet and not the income statement, that's a real danger sign. I've gotten reasonably wealthy off Sun stock and I'm hardly a basher. But who gives a damn how much cash they have? The economy eventually will turn, of course. But all that means is, by then the small-fry with weak balance sheets will be beyond help and the people with cash won't be. So when the economy does turn (which may not be for years), let's say Sun will be one of the companies that's in good enough shape to take advantage of the turn. That is, it will be one of the companies for whom you SUBTRACT OUT THE ECONOMIC UPTURN, because it affects them the same way it affects their able-bodied competitors. Then that leaves the real question, the income statement question: what is there about Sun's strategy, their technology, their products, their services, their customer base, the direction the market is taking, etc. etc., that's going to turn them back into a grower? I don't see computer companies delivering much real innovation these days...just slogans, marketing hype and PR that could mean anything or nothing. Sun's done that stuff for years, and as far as I can see they're still doing it: blowing smoke up the industry's butt while delivering the same ol' same ol'. HPQ may still implode (I'm actually amazed they haven't) and leave a two-horse race with IBM, but will that 'two-horse race' really resemble anything we've seen in the past, what with MSFT and Linux morphing into who knows what? Is the best you can say about Sun that "this thing might double or triple" because of valuation; and the industry is in a long-term indeterminate state? That would be too bad. McNealy will have his hands full pulling a rabbit out of this particular battered hat. It sure would be nice to see a straightforward, comprehensible statement of direction. Or is there one that I'm missing? It's not in their recent press releases. --QS