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

To: George Bielski who wrote (10763)	8/6/1998 1:39:00 PM
From: uu	Read Replies (4) \| Respond to of 64865

George: > I think it's short covering on SUNW. Any opinions? Short covering? I doubt it. In a continuing bull market where momentum playing continues to dictate the direction of the overall market stocks do go up not because of fundamentals but rather perception. Momentum players are looking around to make up their losses of the past few days. Thus their quick in and out of big cap stocks with any sort of rumor surrounding them will be the tendency for quite sometime. At this time SUNW is the perfect target of momentum players. With the idiotic notion of IBM buying Sun the perfect scenerio has been written for momentum players to make up their very recent losses (in billions of dollars) by hyping and pushing the stock up. If and of course (only IF) SUNW hits the $52-$55/shr and if you are a short term player and/or have other undervalued stocks in mind that you want to buy and want to raise cash for them, it would be wise (IMHO of course) to sell SUNW at $52-$55/shr. In my view in a few short weeks from now (perhaps in September-October) you can buy back your SUNW shares in the high $30's-low $40's again. Sun, in my view, continues to suffer from Wall Street's poor perception of company's future prospects when compared to Microsoft/Intel partnership. This perception will however change once IBM truly becomes a partner with Sun (Not as its parent company but rather a genuine partner similar to how Microsoft/Intel partnership works). At that time you can be certain SUNW will easily be trading at 30-40 times its next years assumed earnings (and as always just my humble opinion). Regards, Addi Jamshidi