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

To: QwikSand who wrote (14843)	3/19/1999 12:14:00 PM
From: trouthead	Read Replies (1) \| Respond to of 64865

SUNW stock split projected in Acct *********( this info removed for privacy reasons<g>)# of shares projected to be received on 04/14/99. This split info showed up in my online trading acct today. jb

To: QwikSand who wrote (14843)	3/19/1999 12:32:00 PM
From: Alok Sinha	Respond to of 64865

Most of your calls have been right on lately, but I still wonder, why are you expecting The following reasons: - The move between 112 and 115 (has been on relatively low volume for SUN) is most likely driven by option players who have kept the price artificially high by accumulating to ensure SUN to close around 115. I had thought it would be around 110 earlier, but this week's strong move in large cap / tech stocks resulted in hefty gains in this sector. In the short term, I would consider SUN over-bought for this reason. JUST A SHORT TERM ISSUE. - NAS breadth figures are terrible given the roughly 200 point move in the index. (Much worse than the run-up in Dec-Jan when the small caps were participating. I was bearish then for the techs, more so now. The small caps in my portfolio (and those that I bailed out off) are all down relative to their Jan levels, while the market makes new highs. Not a healthy sign. Also Dell and CPQ are having their numbers cut - so there is some softness in the PC area. (probably a plus for SUN) - The froth in the Internet sector has returned with a flourish. And that usually is sign of excesses (that may last a while, but does correct). - Interest rates are about 50 basis points higher relative to Jan, so the level of overvalauation is greater. However, most of the latest run in the Dow is due to oil stocks, which were undervalues relative to the market. The greater slope in the yield curve is good for the financials, but not for the techs. - Normal profit taking (after a run-up devoid of fundamental changes) What SUN has going for it, that will let it weather any downside better than others: - stock split -low exposure to PC market - AOL/NSCP deal may be a long term winner -Internet traffic / server growth - High Expectations have been set (and re-iterated) for Q3 and Q4 So longer term, I think holding SUN is a no brainer (I rarely say that about a stock). But don't believe there won't be hiccups along the way. Last couple of months I have bought (or sold naked puts) each time it dropped below 100. Sold calls every time it went over 110. Has been quite profitable to say the least. How about a long winded response to a simple question. Regards Alok