Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JDN who wrote (10771)	8/6/1998 6:01:00 PM
From: Tony Viola	Read Replies (3) \| Respond to of 64865

JDN, >>>"Plus, remember for whatever reasons SUNW has histoically sold for a low multiple compared to say IBM so once its in the fold, SUNW's earnings on IBM'S financials would immediately jump the price."<<< You have that backwards. SUNW historically sells at a higher PE multiple than IBM. Today, they are pretty close (~25 vs. ~21). A couple of years ago,though, IBM was closer to 12. IBM - Sun is hard for me to imagine. First impression is that IBM would drive Sun crazy with their conservatism. Then, IBM has changed a lot in that they have given, I think, their different lines of business a lot of autonomy. Do what you need to do to make a profit and we'll stay out of your way. That is, I think, the byline. Let's face it, you SUNW longs just want a big premium on your stock. Can't say as I see anything wrong with that. If IBM/Sun doesn't go through, but Sun was even moderately interested in it happening, I'd have to believe Sun must have been thinking their position is weaker than they'd let on. JMO. Tony