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

To: E_K_S who wrote (10303)	7/2/1998 8:32:00 AM
From: Ben Antanaitis	Read Replies (3) \| Respond to of 64865

All, Looks like SUNW got too far above $42.5 (the Max-Pain point) for Salomon Smith Barney. The Wall Street purple dinosaur downgraded SUNW to out perform from buy this morning. They must want some more shares to sell the public when they upgrade after the quarterly report comes in... JMHO though. Ben A.

To: E_K_S who wrote (10303)	7/2/1998 9:13:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 64865

ALL, Sun Microsystems Inc. (Reuters 10:49 AM ET 07/02/98) (SUNW)...Salomon Smith Barney said that it cut its rating on SUN MICROSYSTEMS INC to outperform from buy. It cuts FY 1999 EPS view to $2.65 from $2.80. FY 2000 EPS view is $3.00. Its price target is $52. ===================================================================== Notice that they maintain a price target of $52. Also earnings growth for FY 1999 to FY 2000 is only 7%. Either they view an overall slowdown in SUNW revenues (SUNW has maintained a 20% increase in year-to-year revenue growth for several years now) and/or the strong dollar will result in greater price competition (when reflected in foreign currencies) thus reducing margins. IMO I think they are being very conservative and I still stay with my $2.80 best guess for FY1999. SUNW's storage division will surprise the street. Also Europe will show very strong results. EKS