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

To: E_K_S who wrote (8401)	3/20/1998 9:47:00 AM
From: E_K_S	Respond to of 64865

An observation....Remember Sun's huge investment in the high end disk storage business. I expect to see significant revenue contributions from this and other related investments Sun has made in this business sector in the last 24 months. SUN MICROSYSTEMS COMPLETES ACQUISITION OF ENCORE COMPUTER'S STORAGE BUSINESS (November 24, 1997) (http://www.sun.com/smi/Press/sunflash/9711/sunflash.971124.2.html) From the article: "... The purchase is expected to significantly expand Sun's presence in the open storage market--expected by industry analysts to reach $35 billion by the year 2000--by adding Encore's mainframe and open systems connectivity, data sharing, and business continuance products and capabilities to Sun's existing line of scalable, intelligent enterprise storage and server systems..." ===================================================================== Several month's ago I was talking to some Sun engineers and they were very bullish on Sun's move into this business. He stated that "...Sun was betting the company..." (a huge capital investment was made by the company during 1996 and 1997 to enter this business is a big way!). I have not heard much from the company regarding their investment and new sales in this sector. ---------------------------------------------------------------------- To summarize, I have noticed that Storage Technology and EMC are trading at all time highs and continue to show excellent sales and double digit earning growth from last year. Could SUNW surprise the street in the next few quarters with similiar sales and earnings results? It appears from this investor that we are going to begin to see significant returns from this stratigic move and large capital investment our company made two years ago. EKS

To: E_K_S who wrote (8401)	3/20/1998 1:11:00 PM
From: Alok Sinha	Read Replies (2) \| Respond to of 64865

I doubt it will move to 50 soon, given the market's fickleness with respect to SUN. Although there is zero premium in SUNW stock with respect to Java potential, you can see how the stock reacts to any negative news with respect to Java. To me, the fact that HP and MSFT are trying to break the Java standard is a validation of Java's potential in the long run. In the near term, the high end servers will drive earnings. The stock will consistently have to battle the Street's perception that NT will hurt SUNW, given Microsoft's past success. If earnings come in line (which I expect), I think we will be back in a trading range in the high 40s. Sustained move above 50s is possible only if earnings surpass expectations (which I doubt). I do think that the road to SUNW's Java strategy will be more bumpy with a concerted effort on part of powerful licencees to break the standard. On the + side, IBM, Oracle, NSCP continue to be 100% behind pure Java. Regards Alok