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

To: Proton who wrote (10302)	7/2/1998 2:47:00 AM
From: E_K_S	Read Replies (2) \| Respond to of 64865

Hi Peter - That's a great report if their estimates are close to being accurate. For example, The report states "...We forecast the market for Java-based infrastructure at $1.2 billion in 2001, up from $75 million in 1997..." NetDynamics with sales of $13.3 million in 1997 accounts for a 17.7% share of the Java-based infrastructure market. If SUNW can develop and grow this business to represent an equivalent market share using Mr. Vogel's 2001 estimates, sales could grow to $212.8 million in 2001. SUNW may have paid a hefty sum for NetDynamics (rumored to be $170 million), it appears they may get their money back in spades based on Vogel's market analysis. From my calculations, if SUNW can obtain a 35% gross profit margin from their application server software division, they should get their investment back in less than five years. Additionally, the software sales will also fuel the growth in new hardware sales. Now, I guess we just need to be patient for (1) our management to continue to implement their business plan and (2) for Wall Street to recognize these new and growing revenue streams. I will continue to add to my long position. EKS