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

To: Haim R. Branisteanu who wrote (16573)	5/24/1999 10:46:00 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 64865

Covered my short PUTS on SUNW this morning. From my chicken page at bway.net May 22, 1999 - From the recent disappointing financial results and distribution reorganization in the sector of PC BOX assemblers, I would lighten up on most other hardware companies. PC's will end up to be given away for subscription fees in a similar fashion as today's cell phones. E-Commerce is under heavy competition as HWP and CPQ entered the field which is getting crowded by the day. The out-sourcing of E-Commerce sites by the big players will lower substantially the cost of entry into E-Commerce. IBM is already very active in promoting it to small business. The present popular names in the "DOT COM" universe of stocks will be hurt due the competition and at present valuation they are prone to a substantial slide. One vivid indication is the slowdown in the advertising hits on the popular "Portals" it seems that even the Internet has it's limits. The advertising revenue growth will slow substantially and AOL stock price will also get hurt. The proliferation of LINUX and MERCED from Intel will hurt traditional high end work station and server manufacturers. The workstation and server lines of IBM, HWP, SUNW SGI, CPQ with its Alfa processor will face stiff competition from DELL, GTW and other mass production "white box" outfits. IBM, HWP, SUNW will need to rely more and more on "farming" and E-Commerce services for their profitability in competition of other software companies offering same services and the consulting arm of the "BIG SIX" accounting firms. (Arthur Andersen Consulting is a valid example). MSFT earnings growth will also suffer as it's Windows NT revenue will be below projected growth and SUNW JAVA will take it's tool from WIN 2000 as the network PC and other Cable TV appliances will gain acceptance. BWDIK Haim