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

To: Byron Xiao who wrote (11662)	11/11/1998 8:37:00 PM
From: cheryl williamson	Read Replies (1) \| Respond to of 64865

Byron, Just what is it about the numbers that is a concern for you?

To: Byron Xiao who wrote (11662)	11/11/1998 9:25:00 PM
From: Christopher	Respond to of 64865

Mixed day for SUNW. Tomorrow is a crucial day. Today SUNW had a mixed day and so did many losers on this thread since they could not keep their mouth shut. Fear, greed, and hope took a toll on SUNW today. During the first hour, greed took over and many people wanting to make money on SUNW bought into it pushing the price by over $2 dollars during the first hour. Later fear got a hold of some people causing them to take their profits and drove the stock down. So what do we did to protect ourselves and our profits. I will tell you in a minute. Today SUNW went down on high volume an indication of distribution. This may have occurred because people were overly concerned about the shareholders meeting. Technically speaking, today would qualify to be called a spike high or a reversal day. In either case it means SUNW has temporarelly reached a top and is ready for some retracement. The news of the shareholder meeting is going to have positive impact or negative impact on SUNW. If the impact is positive then SUNW will open strong in the morning as shareholders will be lined up to buy the stock as happened this past morning. If the impact is negative then shareholder will be lined up tomorrow morning trying to sell SUNW. So the question is what do you if don't know if the meeting is positive or negative for SUNW? If you are sure that the meeting is positive for SUNW then do nothing and enjoy profits tomorrow. If not then read on. SUNW close today at $62 15/16. Call your broker tomorrow morning before the market opens around 8:00 A.M. and ask him/her to put a sell stop for you on SUNW at $62 13/16. You say why. Well, SUNW closed yesterday at 64 1/2. It opened this past morning at 65, a 1/2 up from yesterday close. It was a strong opening since shareholders were lined up to by SUNW. If the effect of the shareholders meeting is positive then SUNW will open tomorrow higher then today;s close of 62 15/16 and your stop will not be triggered. This means you will not miss on any run up that could occur. You can later call your broker and cancel your sell stop as you feel confortable doing that. If share holders are lined up in the morning to sell SUWN then SUNW will open below or at your sell stop and that will trigger and sell your share and this way you will protect the most you can of your profit. If SUNW open down then there is a very good chance that a top has been reached today. Later when the Technical Picture changes, we will jump on SUWN and ride the move like we did this time. To make money in the stock market you have to let your profits run and cut your losses. The sell stop will allow your profits to run if SUNW opens higher then the close today and also protects your profits and stop you from giving it back in case it opens lower. You will be surprised, but people who lose money in the stock market often let their losses run and cut their profits short. The last hour from 3:00 p.m. to 4:00 p.m is very crucial. This is when institution will normally buy/sell SUNW. If SUNW make some gain during the day and then loses most of it during the last hour I would call my broker around 3:50 P.M. and sell my stock. If however it gains then that is a very positive sign. It means institution interest in SUNW is continued. Next week on thursday I will be flying to Las Vagas. I will be attending a conference on Technical Analysis for four days. By then I will have sold all my stocks since I won't be able to watch them every day. When I come back I will pick some stocks and let you know about my picks. Good trading to all, Christopher

To: Byron Xiao who wrote (11662)	11/11/1998 10:45:00 PM
From: Neil Kalton	Read Replies (1) \| Respond to of 64865

Byron, Consider the macroeconomic environment in which SUNW achieved 20% earnings growth in 1997-98 and in which it appears well positioned to achieve 20-25% in 1998-99. There are very few tech companies that have weathered the Asian crisis as well as SUNW has. Also, if the Pacific Rim comes around in late CY 1999 as predicted it is improbable that SUNW will only achieve 17.8% EPS growth in FY 2000. Watch for 2000 EPS estimates to gradually increase over the next year to the 25-30% EPS growth area. Reports of SUNW's impending demise were greatly exaggerated over the last 2-3 years. Contrary to popular belief there is room for MSFT & SUNW to coexist successfully. The Street just now appears to be warming to this concept and, IMO, it will not be long before SUNW commands a premium P/E ratio over EPS growth like the other tech blue chips do (MSFT, DELL, CSCO, LU). The best time to be invested in a stock is during a period of rising earnings estimates and expanding P/E ranges. -nk