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

To: Kal who wrote (8939)	4/8/1998 1:55:00 PM
From: Brian Malloy	Respond to of 64865

Interesting little article here especially thoughts on Asia, microprocessor slowdown and hiring slowdown. WAS THE MARKET WRONG? By Peter D. Henig April 7, 1998 Sun not as sunny as we thought Just when we published an over-the-top bullish survey of Wall Street analysts stating that Sun Microsystems (SUNW) looks as good as ever, two of our boys on the Street downgraded the stock and share prices fell quickly under 40. Morgan Stanley downgraded Sun from Strong Buy to Outperform, while Sutro & Co. lowered its rating from Buy to Accumulate. Morgan was unavailable for comment, but Sutro analyst C. B. Lee summed up Sun's problems in one word: "Asia." In his research note, Mr. Lee described Sun as missing its "revenue plan for Asia by a wide margin" in the current quarter and that there is "a lack of visibility going into the fourth quarter, seasonally Sun's strongest quarter." Beyond Asia's significant softness, Mr. Lee noted that Sun has suddenly "slowed down its pace of hiring, significantly cut down on employee travel, and reduced its contractor headcount." But more importantly, Mr. Lee noted that Sun has also been gradually reducing its forecast of microprocessor modules required from suppliers. As a result, Sutro not only lowered its 1998 Q3 (March) earnings per share from 0.60 to 0.55, but also reduced its FY98 estimate from 2.32 to 2.25. Well, at least Java still looks promising -- except for that little problem with Hewlett-Packard's (HWP) move to clone the language. redherring.com