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

To: xiaxia who wrote (64082)	2/1/2007 5:42:16 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 64865

P/E ratio is given to the management by traders. So, the lead trader maintains the market and established the ratio. If more people sell Sunw, the P/E ratio will drop to reasonable level such as 15, like GE. Revenue growth helps to have higher ratio looking forward 6-18 months. My projection of $15.9 billion revenue(Unix market) 2009 for Sunw, will keep the ratio intact for a few more years. If you have a higher P/E ratio then each penny earned is more powerful to establish a higher stock price. Swartz has to take advantage and squeeze every penny of earnings out before the ratio drops.