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

To: Stormweaver who wrote (16470)	5/19/1999 12:05:00 PM
From: Charles Tutt	Read Replies (2) \| Respond to of 64865

Jim, I hope you're selling short for all you're worth, and I hope you're worth a lot. If you feel so strongly about SUNW's overvaluation, why not? JMHO.

To: Stormweaver who wrote (16470)	5/19/1999 1:20:00 PM
From: Alok Sinha	Read Replies (1) \| Respond to of 64865

And CSCO has been overpriced relative to its segment now for so long that most people accept its high PE it as fair value. SUN is overvalued relative to historical measures , so is IBM. Historically, IBM was valued in mid teens PE. We can argue about relative valuations till the cows come home. Short to intermediate term, stock is priced based on what money managers want to own - longer term it is execution. None of the companies you have mentioned IBM, CPQ, HP have delivered or have a hope in hell of delivering 20% revenue growth in the near future. So relatiove to them SUN's PE is certainly justified. Also when S&P 500 companies are trading on average at high 20s, and cyclicals have doubled in the last 6 weeks you are singling out the wrong stock as being overvalued. The bottomline is the overall market is very overvalued relative to history, and consequently most companies viwed as leaders are overvalued. If the market drops 20%, most high growth tech stocks will correct more than that. But I agree with Charles, you should act based on your conviction, esp. if it is so strong with respect to SUN. Regards Alok