Sun Microsystems
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Sun Microsystems is the type of company that most new startups
hope to become: massively profitable, astoundingly innovative,
and supremely adaptable. But as Karen Southwick's engaging narrative
High Noon makes clear, there were many bumps along the road to
Sun's $25 billion market valuation. In fact, when Sun started
out in the early '80s as a spinoff of the Stanford University
Network (SUN), there was barely a road at all.
It's hard to remember a time when there wasn't a computer on
every desktop, but in 1981, engineers had to stand in line to
use their company's mainframes. Sun's business strategy was to
sell a desktop workstation for each employee who needed a computer.
On top of that, Sun allowed those workstations to exchange data
via an intracompany network, and used graphical interfaces to
make them easier to navigate. Standard stuff now, but a radical
series of concepts back then, and it was inevitable that Sun
would clash with Microsoft. Sun CEO Scott McNealy's enmity for
the software colossus is well-known--he was a key player in the
U.S. government's antitrust action against Microsoft in the late
1990s--and it temporarily scattered the company's focus, leading
to a major reorganization.
The conclusion to the Sun story is, of course, unknown. Southwick
ends her book with a peek into the future, speculating on what
will become of promising computer languages like Java and Jini.
But it seems like it'll be a long time before Sun sets. --Lou
Schuler
|
9/24/00
Our stock of the week is not a recommendation to buy or sell,
just an interesting company you might want to follow. Please see
our disclaimer at the end of this newsletter.
Our stock of the week is Sun Microsystems ticker (SUNW). Sun's
home page is at http://www.sun.com/.
Get a quote at yahoo at http://quote.yahoo.com/q?s=sunw&d=v1
Sun Microsystems, Inc. is a worldwide provider of products,
services and support solutions for building and maintaining network
computing environments. The Company sells scalable computer systems,
high-speed microprocessors and high performance software for operating
network computing equipment and storage products. The Company
also provides support, education and professional services. The
Company's products are used for many demanding commercial and
technical applications in various industries including telecommunications,
manufacturing, financial services, education, retail, government,
energy and healthcare. They are the creators of the Java
programming language. Recently acquired Cobalt Networks.
If you invest in this stock please use only an amount you are
willing to lose as it is risky. We also recommend cutting your
loses at 8% of your original investment which is a stop price
of 108.62. The stock is currently in a weak MACD up trend, . Stock
is up 36% in the last 3 months, 17% in the last 6 months and up
161% in the last 12 months and its performed better than stocks
in its industry group. Its 52-week high is $129.31 and it's currently
trading at 118 1/16. Resistance at $120 and support at $110. According
to their 10Q there are no legal proceedings against Sun, but Sun
has a suit against Microsoft. Their revenues for the previous
12 months was $15.7 Billion with $1.8 Billion in income. Morningstar.com
rates Sun as an "B" for Growth, "A+" for profitability,
"A-" for financial health, and an "D" for
valuation which is a great rating but a bit overvalued. Barchart.com
rates 20% short term sell, 75% Medium term buy and long-term 67%
buy. Stock has a 1.43 rating on Yahoo, which is good. VectorVest
rate it good value, good safety, excellent timing. for an overall
rating of very good and they have a buy recommendation on the
stock. To do a complete analysis go to http://StockG.com/q.htm?em. Steeper competition
with new servers coming from HP, Compaq Computer, SGI and especially
IBM. Stock will split on Nov. 9, 2000. We predict a split price
of $144. Fidelity Management & Research is the top institutional
holder with $7.8 Billion in stock
Find out more about Sun at http://www.amazon.com/exec/obidos/ASIN/0471297135/etopinvestorcom
One risk of many is that this stock is overvalued, and the
Nasdaq has been performing poorly.
Click below for research link on SUNW:
* Motley Fools at http://quote.fool.com/uberdata.asp?symbols=sunw
* Money Central at http://moneycentral.msn.com/investor/research/wizards/srwfund.asp?Symbol=sunw
* Morningstar.com at http://quicktake.morningstar.com/Stocks/StockGrade/_sunw.html
* Barchart.com at http://quotes.barchart.com/texpert.asp?sym=sunw&code=1
* SmartMoney.com at http://smartmoney.com/si/tools/eqsnaps/index.cfm?story=competition&symbol=sunw&fk=7272
* ClearStation.com at http://www.clearstation.com/cgi-bin/details?Event=peek&Symbol=sunw&Refer=http://www.clearstation.com/
* Yahoo at http://quote.yahoo.com/q?s=sunw&d=b
* Second Opinion at http://suretrade.stkwtch.com/Suretrade/Secop/SUNW.asp
* Thomson I-watch at http://iw.thomsoninvest.net/iwatch/cgi-bin/iw_page?ticker=sunw
* Raging Bull at http://www.ragingbull.altavista.com/mboard/boards.cgi?board=sunw
* 10Q at http://moneycentral.msn.com/investor/sec/mda.asp?Symbol=sunw
* Broker Reports at http://www.cnetinvestor.com/reports-single-company.asp?symbol=sunw
* Momentum report at http://www.cnetinvestor.com/momentum-rating-single-company.asp?symbol=SUNW
* Vector Vest at http://www.vectorvest.com
Please note that author currently holds shares of this stock.
News
===============
Sun announces stock split amid sales surge
http://yahoo.cnet.com/news/0-1003-200-2549885.html?pt.yfin.cat_fin.txt.ne
YTD (Year-to-date) Chart
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