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

To: Scotsman who wrote (8181)	3/9/1998 10:55:00 PM
From: Carl Wysocki	Respond to of 64865

Scotsman, the way I look at this is that Java is all upside, none of which is presently reflected in the stock price. Sun's been growing it's top line by around 20%/year seemingly forever, and EPS has been growing faster, at least over the last 5 years. As long as the servers continue to grow faster than desktops, EPS can continue to grow faster than revenue, managements' protestations notwithstanding. From memory, Sun is trading at 18x trailing 12 months EPS, which reflects (poorly) past growth rates and not future growth rates if Java actually starts contributing. Hell, Java can probably be a bust and justify purchases at this price. So, while your fears are valid, the current market price, IMO, already assigns a Zero value to Java, so none of your concerns have downside (ok, in the longer run--no one can really predict the short term gyrations, just take advantage of them). Carl