Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: kathyh who wrote (28800)	4/18/1999 2:30:00 AM
From: Junkyardawg	Read Replies (1) \| Respond to of 90042

That would be a good question for Glenn to answer. I would not go as far as to say this is Fore. I think that would be jumping the gun a little bit but I do think it gives us something else to think about. I am surprised I have not seen this posted anywhere else before. Maybe the thread can look at it tomorrow and give it some thought. dawg

To: kathyh who wrote (28800)	4/18/1999 3:56:00 AM
From: Jorj X Mckie	Respond to of 90042

kathyh, Quick cheat sheet: Packet = IP Frame = Frame Relay Cell = ATM It doesn't mean that somebody might not refer to any or all of them as "data-centric packet" as opposed to circuit switch or TDM (time division multiplex). JXM

To: kathyh who wrote (28800)	4/18/1999 11:20:00 AM
From: MARK C.	Read Replies (1) \| Respond to of 90042

EW YORK. 03:45PM EST—Sun Microsystems (nasdaq: SUNW) is under a cloud of doubt. After the company posted better than expected earnings yesterday for the fiscal third quarter ending March 28, its stock is off almost 8% in trading today to $55 a share. The reason? The company has come out with a conservative outlook for the future and wanted Wall Street to trim its overly optimistic estimates for the second half of 1999. Merrill Lynch computer hardware analyst Steve Milunovich obliged. He thought the company was one of the best positioned companies in the technology business, yet cut his intermediate term rating to "accumulate" from "buy" because the stock is too expensive given the mixed outlook for 1999. Others on Wall Street have followed suit, which explains the weakness in the stock. Is the selloff overdone? Amit Chopra, who tracks the hardware stocks for Credit Suisse First Boston, thinks it is. Chopra says that Sun Microsystems chief financial officer, Mike Lehman, painted an overly cautious picture when he said that the year 2000 problem could take some of the sizzle out of the Sun's rapid earnings growth. While most stock market analysts are trimming their estimates, Chopra has chosen the alternative route and expects the company to grow 21% in fiscal 2000 to $14.2 billion, versus the 16% consensus sales growth target. For fiscal 1999 Chopra thinks Sun will have sales of $11.7 billion. Chopra's contrarian views stem from the fact that the Internet will continue its hypergrowth. Unlike other hardware makers, Sun sells a large portion of its hardware to Internet service providers, telecommunications and high technology companies. The testimony comes from the fiscal third quarter earnings: After the market closed on Thursday, Sun reported earnings of $291 million, or 71 cents a share, versus $232 million, or 59 cents a share, in last year's third quarter. Analysts were looking for an average of 70 cents a share, according to First Call. Revenue surged 24% to $2.94 billion, led by higher sales of Sun's computer networking products. Chopra thinks Sun is going to blow away the competition and will maintain momentum, and that's why he reiterated a "buy" on the stock with a 12-month price target of $70. He also increased his earnings per share estimate to $1.68 a share from $1.63 a share. "Sun Microsystems and EMC Corp. are companies which are key hardware suppliers to the Internet buildout," he says. In other words, companies will keep spending on highend hardware such as super servers and data storage, Y2K or no Y2K. EMC Corp. (nyse: EMC) is one of the biggest data-storage companies in the world. Over the past three trading sessions EMC has also come under pressure. The stock is down to $108 from $131 on April 13 after an analyst cut his estimates and rating of the company based on Y2K concerns. "This is another key Internet plumber which has been unnecessarily punished," says Chopra. He rates EMC a "buy" and has a $125 a share price target on the data-storage company