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

To: Eric.sun who wrote (16474)	5/19/1999 3:06:00 PM
From: Alok Sinha	Respond to of 64865

I am surprised at CSC's PE (only 29 on a trailing basis); a slight premium may not result in too much dilution of SUN's earning - but I don't want them to overpay for CSC. Computer Associates tried a hostile bid (at a 30% premium) sometime early last year which CSC was able to fight back. I think they adopted a poision pill at that time. I doubt very much that Scott McNealy would go in for any deal that is even mildly viewed as negative by analysts. If you remeber during the Nestcape, AOL negotiations - SUN was able to ensure (even at the risk of deal coming apart) that the terms did not dilute earnings. BTW - I am glad that the Fed adopted a tightening bias. As I had predicted that eases the pressure on the long term Treasuries, and makes the market appear less overvalues (in Wall Street Valuation models). Regards Alok