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

To: QwikSand who wrote (59233)	3/8/2004 1:43:29 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 64865

...and I'm bored with trying after three long years. You are talking about the entire nasdaq. I don't know if the entire technology industry is going down, or what.

To: QwikSand who wrote (59233)	3/8/2004 2:25:56 PM
From: E_K_S	Respond to of 64865

Hi QwikSand - I too have been thinking about this investment for the long term. First do you think if the company did a reverse split of their common stock, S&P would upgrade their previous "junk" rating or was this decision made based on their outlook of the industry and Sunw's current business model? Sunw could then refinance future debt using new convertible preferred shares. This would only work if these new shares were rated better than "junk" status. Second, if SUNW is betting on CHINA sales (per person license fees at $0.50/person), then I too may move on. This type of revenue model just will not work especially in China. I do not trust the Chinese government as they have already stated that they want to own all the software rights be it open source or proprietary that is used in their country. Too many companies have gotten screwed by the Chinese "stealing" intellectual property and I have not heard Sunw's solution to this issue. Finally, Sunw's overall hardware and software model for their next generation products sounds OK to me. They offer a sound integration upgrade path for their enterprise customers using their new Solaris/Linux OS. However, the big unknown to me is what impact Microsoft will have in the industry when they begin to release their new OS server software (Longhorn) and if this will further creep in on Sunw's market share. Based on the current price and current liquid cash levels, SUNW is not over valued IMO. It's their future and how much SUNW has to draw down these resources before they can stabilize sales and expense. The many company acquisitions SUNW has made in the past three years have also flopped so their track record in this area is not very good either. I just might wait around awhile as IBM may want to pick up some of SUNW's parts before they completely fade away. IBM sold it's disk drive division to Hitachi last year so they might be interested in SUNW just to acquire their customer base. EKS