To: Charles Tutt who wrote (7124 ) 1/20/1998 7:01:00 PM From: Byron Xiao Read Replies (1) | Respond to
Charlie, don't compare Dell and Sun. Look at the Dell's earning growth. It's more than SUNW, that's why DELL deserves a higher PE than SUNW. However, being both a SUNW and DELL stock holders, I can easily see SUNW having a higher return than DELL over the next year, because SUNW has been beaten down quite badly over the last quarter. If SUNW as promised, announced a major JAVA deal this week, I can see it shooting up to 50 by the end of the week. Otherwise, we might see some profit taking later the week and drag the price down to around 45. I think we will trade between 45 - 55 before the next quarter report comes out in April. How we will do after that will entirely depend on how well SUNW execute next quarter. If they execute as falsilessly as they did this quarter, then look out, we may see 60-65 in June. If not, it could dip down to the 30's.
