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

To: Holger Johannsen who wrote (5830)	11/28/1997 3:24:00 PM
From: xiangheng xu	Read Replies (1) \| Respond to of 64865

An analyst said on a tv show that sunw would be dead money for the next six months. Reasons 1. The street is waiting to see if Java can bring any new revenues. This will not be clear untill six-ten months later. 2. Sun faces new competitions from dell, hp in the server, workstation market. Any reponses? I have sold 1k at 36+. This is my tax selling. I still have a large position in sunw.

To: Holger Johannsen who wrote (5830)	11/28/1997 11:19:00 PM
From: uu	Read Replies (1) \| Respond to of 64865

Holgar: > Remember the S&L crisis in the US? Did foreign banks invade the > US and do they now dominate the US market today? But of course not. However there is a huge difference between now and then. Back in the early 80's US was facing rising inflation along with rising interest rates. This was also the case oversees. Therefore the risk ratio was much much higher for foreign financial institutions to jump in and buy the bargains of the 20nth century then. Today we are living in an environment that is 180 degree the opposite of the then when the S&L problems occured. We no longer face inflation and/or high interest rates. In fact we are now facing deflation and lowring of interest rates (not only in the US but also on a global basis). Therefore the risk ratio for financials as well as US tech firms is at minimal for them to assimilate their competittors oversees (e.g. Japan, Korea) and to expect huge rewards from this assimilation! Also if you recall when the S&L problems occured foriegn financials institutions/and individuals (e.g Japanese) did not buy the financial institutions that were facing the S&L problems, but rather bought the real estate in the US! This made a better risk reward ratio for them since in an inflationary environment it would have made much more sense to buy the real estates that were being sold at bargain prices rather than the actual financial institutions that held the mortgage for those real estates! You state: I don't see any argument why Sun and IBM should be the only > companies that can take advantage of the current situation in Asia. > What is the distinct advantage of those two companies? I agree 100% wit you that CPQ, and DELL will also benefit greatly. However I strongly believe companaies such as IBM, Sun, (and HP) will be the real big winners. For developing coutnires in the South East Asia (such as Korea) to get out of their current economic problems they need to improve their information technology infrastructure. This means they first need to build their client-server technology before anything else. So in my opinion Sun, IBM and HP will be the ones to provide them with this basic technology. Once this is established the PC makers and alike will benefit greatly. Companies such as CPQ and DELL will benefit from the Asian situation in the short run not because of the increase in the demands in the PC by that region of the world, but simply because their production cost will be reduced dramatically (thanks to the currency devaaluations than has taken place). Sun and IBM will benefit because the demand for their products will increase (and on top of that they will also enjoy a reduction in the production and manufacturing costs). On the longer term CPQ and DELL will enjoy a huge growth because once the basic information technology infrastructure is in place the demands for their products will fly very high! As always just my humble opinion. Regards, Addi Jamshidi

To: Holger Johannsen who wrote (5830)	11/29/1997 8:34:00 PM
From: Thomas Haegin	Read Replies (1) \| Respond to of 64865

Regarding Japanese Banks: I just don't know. I would be very careful to invest in a Jap. Bank at this point. Maybe BTM is too big to fail, but the shares can go lower. I think there are many things that we normally do not understand about the way the Japanese do business. I think the whole situation is very hard to see through: Come on! They have gangster syndicates blackmailing companies up to the very highest levels. And mobster dealings seem to be going on still. How old fashioned! I'd rather buy some nice Deutsche Bank or CCI or SBC in Switzerland. HSBC is probably also a pretty good bet. But Japanese Banks... Thomas