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

To: Carl Wysocki who wrote (7844)	2/19/1998 9:16:00 PM
From: ROBJAZ	Read Replies (1) \| Respond to of 64865

[NASDAQ:SUNW] will slow down investment in Asia as the Asian financial crisis has led to lower growth here, marketing director Asia South George Lee said. "We're not dis-investing in Asia but we're not just building investment as much as before," Mr Lee told Newsbytes. The investment reduction will mostly impact certain regions and areas, such as development work being done in Japan, while expansion in Southeast Asia will be slowed down in terms of the number of staff employed. "In terms of the amount of budget, our investment budget this year is almost the same as 1997." In Thailand, Sun is recruiting new staff. Sun has 21 employees here and is expected to add 1-2 more persons this year. Last year, the sales revenue of Southeast Asia rose some 40 percent, compared to 70 percent growth in 1996. This year the growth rate is projected at 25 percent. Of the four countries in Southeast Asia, Malaysia showed the least growth. Thailand's performance was up 50 percent. Sun Microsystems country director Thailand, Therasak Tangpoonphonvivat, said Sun was going to implement a new marketing model in Thailand by introducing a new distribution channel called Peak Product Distributor (PPD) group. PPD would emphasis the workgroup server through the reseller network only. "While distributors are allowed to sell workgroup servers directly and through resellers, PPD will sell the products through resellers only. However, if a PPD wants to sell the servers directly, they can do it but they won't get an extra discount," he said. Mr Therasak added that he expected to appoint some 4-5 PPDs this year, but would allow all three existing distributors to apply for the program first. This year, he said, Sun forecast that workgroup servers would grow faster than enterprise servers due to limited budgets in organizations. He expected to see flat growth in revenue this year in terms of dollars. Talking about Java in Thailand, Therasak said there are a few projects on Java in the works but they were still confidential. He hoped to see more activities on Java after the launching of the Java Thai OS, expected in the next couple of months. "Right now there is a Java Training Centre at Siam Media and a Java language curriculum at Assumption University," he said.

To: Carl Wysocki who wrote (7844)	2/21/1998 6:55:00 PM
From: Hugh A. McWhorter	Read Replies (1) \| Respond to of 64865

Carl--I copied the following from IRS Publication 550, you might want to consider getting a copy. ( I have McMillan but have never read the section on tax implications of option sales for the combination of reasons that my book bears a copyright date of several years ago and what ever he says is non authoritative. Yet, without hesitation I recognize that he is a superb writer and his book is the best I have found on options. ) "If a call you write is exercised and you sell the underlying stock, increase your amount realized on the sale of the stock by the amount you received for the call when figuring your gain or loss. The gain or loss is long term or short term depending on your holding period of the stock." "A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: 1) Buy substantially identical stock or securities, 2) Acquire substantially identical stock or securities in a fully taxable trade, or 3) Acquire a contract or option to buy substantially identical stock or securities. If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale. If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities. The result is your basis in the new stock or securities. The effect of this adjustment is to postpone the loss deduction until the disposition of the new stock or securities. Your holding period for the new stock or securities includes the holding period for the stock or securities sold. Stock or securities. Under the wash sale rules, stock or securities include contracts or options to acquire or sell stock or securities. " Don't mean to spoil your day. As to covered call sales on SUNW with the stock a little bit below $45 I got $1.25 for an approximate 3 month covered call write. If my math is correct this annualizes to $6 or approximately an 11% rate of return for selling a call which was about $10 out of the money and short lived. I too used to go for the big bucks on long term writes until it occurred to me that the option pros on a Prodigy board in which I participate always wrote short term and rolled in the face of a run. Assuming SUNW retains my bullish prospective I will continue to sell short term calls at least $10 out of the money. 11% is a little better than what I get at the bank . Best personal regards and thanks for the post. Hugh