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

To: QwikSand who wrote (63118)	6/8/2005 9:09:16 AM
From: cfimx	Read Replies (1) \| Respond to of 64865

qwik look what they bought...they bought a cash cow no growth company with PROFITS...this is not about technology...its about adding PROFITABLE revenue because its the main thing sun micro lacks. in that sense, mcnealy HAD to make this acquisition so i define it as damage control, he is controlling the damage a stand alone sun micro is doing to shareholders. In doing so, he is CAPPING his upside. He paired the dot in dot com with an old school storage company. If sun micro didn't NEED to make acquisitions in PROFITABLE companies, it could invest in high growth areas (that are not profitable yet) or buy back its OWN STOCK. why do you think mr pony tail is talking about MORE acquisitions? Do you hear SUCCESSFUL companies saying they are going to "roll up" technology companies? NO. You hear them talk about STRATEGIC acquisitions. This is a tacit admission that they don't LIKE at all their existing business. If you do, you don't go on a buying binge that DILUTES the shareholders interest in those existing businesses. For example, you won't see American Express buy ANYTHING that dilutes the shareholders interest in its outstanding credit card and travel businesses. You don't see Microsoft diluting its Windows and Office franchises. regards