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

To: H. Wai who wrote (10314)	7/3/1998 5:34:00 AM
From: JDN	Read Replies (1) \| Respond to of 64865

Dear H.Wai: Isnt the market strange? Lets assume EVERYTHING in that article is EXACTLY correct. That means SUNW earns $2.65 next year divided into closing price of $42.50 means market only willing to pay 16 times earnings for SUNW's earnings yet these internet stocks are selling for 100's if not 1,000's times earnings and any REASONABLE person knows that it will be MANY YEARS before they will be reasonable in relation to earnings IF EVER. Finally, while Japan accounts for 10% of SUNW revenue per that article, has it considered that SUNW could very well find more business in expanding EUROPE next year and maybe even CHINA? Seems like when it comes to SUNW ONLY the NEGATIVE is considered. When it comes to ANY internet stock only the RIDICULOUSLY POSITIVE is considered. JDN PS: just to show you how ridiculous all this is, as a hypothetical. Lets assume SUNW buys an internet company. Merely owning one ought to move the p/e ratio to in the 100's. Assume dilutes earnings 50% to 1.30 use 100 pe SUNW would sell for 130 a share with half its earnings. haha. The whole thing is prepostorous!!