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

To: The Ox who wrote (11719)	11/17/1998 12:27:00 PM
From: KM	Respond to of 64865

You are exactly right and here's a good column to back that up: Wrong! Dispatches from the Front: Learning from Hewlett-Packard's Mistakes By James J. Cramer 11/17/98 12:17 PM ET The market has spoken: Hewlett-Packard (HWP:NYSE) sucks. Let's face it, every time we think they've gotten it together, they shock us to the downside. Obviously, at this point, the board should get involved and figure out what the heck is going on. As I own the HWP November 60 calls (against some sale of common), I think I have spent my last nickel on this company until the current regime gets the boot. But that doesn't mean you can't learn from these guys. First of all, they are getting their butt kicked, especially because they see no turn in East Asia, when everyone else has started to see one. Someone is winning. My take, from calls we have made, is that Sun Microsystems (SUNW:Nasdaq) is doing most of the winning. Second, this HWP situation gives me growing conviction that IBM (IBM:NYSE), which competes with HWP, must be doing many things right. I am long IBM, and I will buy more on a no-rate-cut selloff. Finally, I want to redouble my efforts on Compaq (CPQ:NYSE), which I am not long, because they, too, could be doing better because of HWP's largesse. The last stocks I made bets like this on were Nokia (NOK.A:NYSE ADR) and Ericsson (ERICY:Nasdaq ADR) about 300% ago, when it was clear that Motorola (MOT:NYSE) was falling apart. (I am now long Motorola and Nokia and no longer in Ericsson because Motorola has regained momentum and Ericsson has lost it.) I think this Hewlett-Packard collapse adds multiple points, if not revenues, to Sun Micro and IBM. That's worth the price of my HWP calls. <Picture> <Picture> James J. Cramer is manager of a hedge fund and co-chairman of TheStreet.com. At the time of publication, his fund was long IBM, Nokia, Motorola, Sun Microsystems and Hewlett-Packard, though positions may change at any time.