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

To: Dr. Arvind who wrote (9147)	4/17/1998 5:24:00 PM
From: Bill Oegerle	Respond to of 64865

> Dr. Arvind writes: I see SUNW is worth $70 today I have been following SUNW for a number of years, and can tell you that SUNW fluctuates between a P/E of 15 and 25, depending on the exuberance of the market's outlook for Sun. If you believe in the long term prospects of SUNW, you can buy and hold for handsome profits and ignore these fluctuations (I bought my SUNW in 6/95 for $10/share), or you can trade SUNW -- just buy when the current P/E gets down around 16-17 and sell when P/E > 22-23. Current P/E = 40.5/2.31 = 17.5 (assuming EPS of 0.74 for Q4), so I would buy on dips down into the 30s, and sell when the stock rises into the low 50s. I think SUNW will hit the low to mid 50s within 6 months. But I dont see SUNW hitting the 70s for at least a year (unless the market goes crazy). just my 2cents, Bill