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


To: Sonki who wrote (16472)5/19/1999 12:47:00 PM
From: Eric.sun  Read Replies (2) | Respond to of 64865
 
I heard on CNBC as well, SUNW buy CSC?

It may make sense since SUN pushes for ServiceProvider.com.



To: Sonki who wrote (16472)5/19/1999 1:47:00 PM
From: E_K_S  Read Replies (1) | Respond to of 64865
 
Hi Sonki - CSC would make an excellent fit with SUNW as they could be the integrator for building the client's software solutions. I put my order in to buy some CSC as this was a company I had been looking at a long time. If SUNW by chance can work out a merger or an alliance it will be positive for CSC and positive for SUNW.

The free flow cash flow that CSC generates would help support a much higher PE for SUNW and the new revenue stream would be additive to SUNW's other product lines.

EKS

P.S. CSC has 159 million shares outstanding; a book value of $15; sales of $47/share or 1.3 times sales; and should earn $2.16/share this year.

Computer Sciences provides information technology services through: outsourcing (operating a customer's technology infrastructure); systems integration (designing, developing & implementing information systems); and IT and management consulting services. For the nine months ended 1/1/99, revenues rose 17% to $5.53B. Net income rose 24% to $224.4M. Results reflect growth in European enterprise-wide solution activities and the absence of $208.4M in charges. *PRELIMINARY: For the 3 months ended 04/02/1999, revenues were 2,130,400; after tax earnings were 116,800.