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

To: Charles Tutt who wrote (12603)	12/13/1998 6:24:00 PM
From: Dale J.	Respond to of 64865

Re:I will suggest, however, that the relatively low revenue growth rate last year may make comparisons a bit easier going forward. Call it spin if you like, but perceptions are important. Charles on that we can agree.

To: Charles Tutt who wrote (12603)	12/13/1998 7:32:00 PM
From: E_K_S	Read Replies (3) \| Respond to of 64865

Hi Charles - SUNW has derived much of their forward growth from very intelligent acquisitions. For example, their storage solutions that are now contributing to their top line growth was from their purchase of the storage division of Encore computing 18 month's ago. Therefore, Sunw's management has entered new growth markets by buying new technologies. Net Dynamics was a recent purchase that should yield dividends in the future if Sun can exploit the benefits of this technology. I agree with you that evaluating earnings and PE based on next year's earnings vs the industry is a better method IF analysts consensus estimates can be obtained. From everything I can tell, SUNW's next years earnings are being increased by analysts as we move into next year. This is a good thing. ===================================== On a 2nd item, I just got back from seeing "It's A Bug's Life" a movie created by Pixar for Disney. I noticed that they used SGI machines to create the graphics and SUNW machines to do the rendering. This information was shown in the movie credits at the end of the movie. What exactly is rendering? Will this be a big market for SUNW in the future? Who else requires computing power to do rendering? I assume SUNW servers on a large network could be configured to perform "rendering" in real time if required. Would there be applications in weather forecasting models, CAD/CAM design, or graphic design? Here is another market that SUNW machines perform well in. If you looked at trailing revenues in 1996, you would have never guessed that PIXAR would have selected SUNW machines to build their movie in 1998. That's what I like about SUNW and their management. They are forward looking and providing the products (and performance) that customers want now and in the future. EKS