Optimistic Investor

3 Comments

    • ON: Sun Aug 3rd 11:57 AM
      Commented on:
      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 !
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    • ON: Thu Jul 17th 08:05 AM
      Commented on:
      Sun's Rally Fades As Q4 EPS Misses
      Hey Eric have you ever had something nice to say about Sun Microsystems or are you a paid basher ? Sincerely
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    • ON: Wed Jul 16th 10:08 AM
      Commented on:
      Sun's Forecast Sunnier Than Anticipated
      This is the company everyone loves to hate . Maybe its envy of their ubiquitous software , Java Solaris and now MYsql , or maybe it is their past battle with Microsoft and all those verbal jabs by co-founder Scott Mcnealy . With their open source strategy all the proprietary software vendors must be wishing that Sun would go away . Oracle has to hate the fact that they bought MYsql and I suspect that some tension between the companies has occurred . Ask yourself what technology Dell has contributed to the Industry besides their fast food like production line . As a matter of fact all the big guns are using Solaris and all except Hewlet Packard has signed a licensing agreement even though they too are offering it . Java is in everything except the Iphone which all though is rising is still a small fraction of the overall cell phone business . Sun's CEO has a vision that the developer comunity loves because it allows them to adopt and adapt to any and all environments , write once run everywhere . The challenge as I see it is their marketing which has frankly been dismal . Now that Grantham has left for HPQ that should get better , watchout HPQ . At current stock price a take over or hostile buyout is indeed a possibility but hopefully Sun can thwart any attempts to do that . Any suitors would most likely be the same companies that Sun's initiatives are targeting . A takeover would sell off its parts , shut down open source and pocket the near 4 billion in cash . This would be disastrous for the industry at large as proprietary code would once again rule the day by fragmenting the developer comunity . I applaud their layoffs and continued right sizing which if done several years ago would have stopped the precipitous stock price slide that we have seen . Positive cash flow every quarter but one is a better measure of their viability than current stock price . Obviously I am a believer in their future future success and Schwartz's vision going forward .
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