TO CAPTAIN KANGAROO

Sun Beats Estimates, But Outlook Dicey

Take a deep breath and relax you purveyors of doom and gloom . I see people posting the inevitable demise of SUN as if they were wishing it to be true . The fact is that SUN is profitable and always has been . I can only remember 1 quarter in the last 10 years where they were not cash flow positive . All this going bankrupt talk is just pure hooey . Sun is spinning off about 1.3 billion in free cash flow on a yearly basis . Companies do not go bankrupt with 4 billion in cash and with positive cash flow in the billions . The stock buyback will be huge because of the low stock price . At current price they will be able to buy back about 1/7th of the outstanding shares . Of course this will lower the PE and lessen the dilution . They are growing worldwide and like other companies relying on the US economy they are seeing their customers hold back on capital expenditure . So when the US economy bounces back, as we all know it will, they will be there ready to grow US sales again . Proprietary software will die and SUN's open source initiative will prove to be wise . Why would you want to be locked into a vendor or OS when you can have your choice and be indemnified against lawsuits . Dell has nothing but fast food computers . They offer nothing but cheap hardware without any innovation . What was the last time DELL had any innovative offering ? Time to buy JAVA !