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

To: H. Wai who wrote (10162)	6/19/1998 10:25:00 AM
From: H. Wai	Read Replies (1) \| Respond to of 64865

Does anyone know any Website that provides charts of currency exchange rate? Thanks, H.Wai

To: H. Wai who wrote (10162)	6/19/1998 11:47:00 AM
From: E_K_S	Read Replies (1) \| Respond to of 64865

HiWai - If you look at SUNW's annual report, you will notice a section that explains their use of Foreign Currency hedge contracts. I believe SUNW sells their products in U.S. dollars and may hedge a portion of their foreign (ie. Asia, Europe, etc) sales with currency future "forward" contracts. I suspect they buy an equivalent forward currency contract in YEN using Dollars equal to their estimated Asian sales, thus reducing their exposure to large changes in currency values. This technique only works if (1) they hedge 100% of their foreign sales, (2) their sales estimates are correct and (3)the correct in the money "forward" contract is bought (or sold). If the deviation in currency values change significantly and are outside the hedge, then their is a potential for a small loss. Also, I believe SUNW only hedges a portion of their foreign sales not 100%. I believe last quarter ADDI had posted some information from SUNW's annual report that explained SUNW's currency hedges. However, I could not find the actual links. ===================================================================== Here are some previous posts regarding SUNW's high end storage business that I posted back in March 1998. Sunw's investment in the High End Storage Business... Message 3778405 Lot's of potential Market Growth Message 3814053 More Sunw investments in High End storage solutions... Message 3871772 SUNW also provides fibre channel storage solutions techstocks.com ==================================================================== Hope this helps... EKS

To: H. Wai who wrote (10162)	7/1/1998 10:16:00 PM
From: E_K_S	Respond to of 64865

More news on SUNW's purchase on Encore Computer Corp. and their storage products division....(Reuters 01:18 PM ET 07/01/98) Sun Microsystems Inc. (SUNW) Encore Computer Corp. said it would contest a decision by SUN MICROSYSTEMS INC to set off $10.1 million against the $35 million payment due Wednesday toward the purchase of Encore's storage products business. Encore said in a statement the set-off was based upon Sun's estimate of certain claims for indemnification under the asset purchase agreement between dated July 17, 1997. Encore said it was contesting substantially all of the set off amount and is in the process of analyzing each of the contested claims. Sun announced a year ago that it would buy the storage business assets from Encore for $185 million. ==================================================================== I wonder what this is all about? Could some of Encore's assets be over stated? It's nice to see that SUNW is reviewing all the terms and conditions and each dollar is accounted for accordingly. EKS