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

To: uu who wrote (5288)	11/1/1997 10:43:00 AM
From: Rational	Read Replies (1) \| Respond to of 64865

Addi: What you say sounds very upbeat for shorters of MSFT: This is a repeat of history (in a different manner of course) and similar to when Microsoft Windows was first introduced and everyone started introducing Windows based applications and tools and moving away from character cell/Mainframe model. Glorious days are ahead of us SUNW share holders that I feel even for us hard core SUNW believers it will be surprising as how rapidly this company will grow next year! Bill Gates' achievement is due to his strong business sense (like someone here said Bill can sell snow to Eskimos!) He made DOS/Windows/NT (tinkering the existing free knowhow of Unix and X-Windows) proprietary for a captive market. Bill Gates will perhaps lose big as Java is popularized. I do not see how SUNW's revenue stream will go up in the same way MSFT's did to the point of a P/E of 50+. Unless SUNW can be believed to amass revenues/earnings like MSFT did, its P/E is unlikely to go up to the level of a market leader (like Lucent, Cisco, MSFT). Everyone will of course recognize SUNW as the inventor of JAVA and hence will be inclined to buy a few more Work Stations/Servers from SUNW than they would otherwise. But, there are many competitors like IBM and HWP (in addition to new entrants like CPQ, DELL) who will be as aggressive to sell JAVA-based software on their systems. From all your arguments and upbeat notes, I miss the link between JAVA's popularity and SUNW's earnings stream the way MSWindows populatity was linked to MSFT's fortune. SUNW's stock price is under pressure not because of missing a few pennies in earnings (everyone knew it was due to devaluation of SEAsian currencies), it was due to the knowledge for the first time (after the JAVA licensing contract was made public) of how little SUNW made from JAVA. Sankar