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

To: Sonki who wrote (15023)	3/29/1999 11:34:00 AM
From: Bala	Read Replies (1) \| Respond to of 64865

AOL, Sun set to detail plans Tuesday Sun Microsystems (SUNW) and America Online (AOL) advised news media reps that they will outline plans to develop Internet software and e-commerce products Tuesday. Top executives from the companies will be on hand for a video conference in New York at the Waldorf Astoria. Executives including AOL's Barry Schuler and Sun's Ed Zander will offer details of their companies' strategic alliance and strategies for enterprise and e-commerce software. From Briefing.com on 4/29 Brief: Since bottoming last October, Sun Microsystems has soared 199% making it one of the better performing stocks in the tech sector over this period... Strong earnings momentum fueled by the dynamic growth of the Internet has been the driving force behind the stock's success... While we expect SUNW to maintain its bullish bias through April 8th, when it is scheduled to split 2-for-1, Briefing.com contends that the short- to intermediate-term downside risk now outweighs potential reward... Company does not have a recent history of big (positive) earnings surprises, and with expectations so high anything shy of a blow out number could be seen as a disappointment... Given that 19 of the 23 analysts following the stock give it a buy rating, little room for additional upgrades... Conversely, any disappointment and a number of firms would likely trim estimates and/or cut ratings... Sun is a well managed company that will continue to deliver better than market growth for years to come... But at 41.8x estimated FY99 results and 34.8x projected FY00 earnings, the stock is near-term overpriced... SUNW expected to grow earnings by 18% over next 5 years... Technical indicators also point to need for corrective activity, as stock trading well above its long-term moving average... In addition, volume has been slowing while stock has continued march to new high ground, not usually a good sign... Initial support can be found in the 96-94 range." Source: briefing.com