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

To: LKO who wrote (7080)	1/19/1998 7:37:00 PM
From: Beachbumm	Respond to of 64865

LKO, I do not mean to reply for Twister, but I think you and he are comparing apples and oranges. What I am hearing (reading) is that Twister is saying that the markets SUNW sells into are growing at 15%. Therefore, he feels SUNW trades high now. The problem, of course, is that he assumes SUNW grows no faster than these markets. That it has no competitive advantage. That it is not kicking IBM, DEC, HWP, CPQ butt all over town. Well, obviously, I own SUNW because I think it does have a competitive advantage and grows faster than the "intrinsic" rate. Beachbumm

To: LKO who wrote (7080)	1/20/1998 9:26:00 AM
From: cfimx	Respond to of 64865

Don't look so much at earnings. Earnings growing faster than revenue can't go on forever. Just do the math on that one. This is from the latest earnings release: "For the first six months of fiscal 1998, Sun reported revenues of $4.549 billion, up approximately 15 percent. Net income, excluding one-time charges related to acquisitions, was $386.4 million, up 28 percent over the same period a year earlier. Earnings per share, excluding these one-time charges, was $.98, an increase of 27 percent over the corresponding period a year ago." Most people see the first quarter as an air pocket and now sunw is off to the races again. That is for you to decide.