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| vetelmo |
 Posted: Wed May 31, 2006 12:37 pm Post subject: SUNW |
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Sun Microsystems to cut up to 5,000 jobs
By DAN GOODIN, AP Technology Writer
SAN FRANCISCO - Computer server maker Sun Microsystems Inc., whose revenue has declined four years in a row, said Wednesday it planned to cut 4,000 to 5,000 jobs in an effort to return to consistent profitability.
The cuts, which will reduce Sun's 37,500-person work force by 11 percent to 13 percent over the next six months, will cost Santa Clara-based Sun from $340 million to $500 million over the next several quarters, the company said.
Sun executives expect the plan, which also includes selling real estate and exiting leases, to save the company from $480 million to $590 million, once it is fully implemented sometime around June of next year.
The company, a major supplier of computer servers that run corporate networks and Web sites, was once a Wall Street darling but has struggled since the dot-com bubble burst in late 2000. Servers that run processors based on Intel Corp. designs and Microsoft Corp.'s Windows or the free Linux operating systems have grown increasingly powerful, often performing the same jobs at a fraction of the cost of Sun products.
Investors have driven down Sun shares from a high of about $64 in September of 2000 to a range of about $3.50 to $5 over the past year. Some analysts have criticized Sun's management for not cutting costs more dramatically.
More on this story
I think in the short term it may effect the stock price negatively but in the long term i see it turning around.
So what kind of impact do you think this is going to have on the stock price of SUNW? Short term or long term impacts? |
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| frusnak |
| Posted: Wed May 31, 2006 1:21 pm Post subject: |
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I think it's a little too late for them to turn it around. Way too much competition in this segment. IMHO  |
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| Dave Rathbun |
| Posted: Wed May 31, 2006 1:24 pm Post subject: |
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CFO
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One of the most interesting things, to me, is that SUNW is - despite its troubles - consistenly in the top 10 most actively traded stocks on the NASDAQ exchange. So that means that there's money to be made, just little bits at a time. I've owned SUNW for a long time, and got tired of watching it go up and down and not earning anything from it. So now I buy when it hits the low 4's or high 3's and sell in the high 4's low 5's range. If you buy a bunch of shares, you can make some spare pocket change that way. 
As far as their technology, there was a time when technology was a selling point. Now it's all about using common parts. Use standard CPU chips on standard motherboards, no proprietary operating systems, just standard open stuff. Many people think Sun no longer has enough of an advantage in the market place to make it work paying a premium for a proprietary system.
At one point Sun owned the financial markets. The NYSE and NASDAQ both ran on Sun equipment, if my memory is correct. They may still, I don't know. Sun does make good equipment, they just have to find a way to differentiate themselves and make a market where they can sell stuff. |
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| frusnak |
| Posted: Wed May 31, 2006 1:33 pm Post subject: |
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Well put Dave Lucent technology was a similar performing stock. I made some money on it but it was alot of work (watching price swings) and too agrevating the way it was mismanaged.  |
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| Dave Rathbun |
| Posted: Wed May 31, 2006 1:45 pm Post subject: |
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CFO
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| I think eBay still uses Sun servers. They still have a "Powered by Sun" logo on their home page. And amazon.com also used their equipment at one time, and may still. |
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| vetelmo |
| Posted: Thu Jun 01, 2006 4:36 am Post subject: |
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| This morning SUNW took a nose dive!! |
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| vetelmo |
| Posted: Thu Jun 01, 2006 3:55 pm Post subject: |
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SUNW got low as 4.35 today which is just barely higher than what I bought it for. Lucky for me it went back up some but it looks like AH trading shot it back down some more.  |
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| Dave Rathbun |
| Posted: Fri Jun 02, 2006 2:35 am Post subject: |
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That's why I bought only in e$ and not real $$ yet.  I think when it gets to sub $4 ($3.90-$3.95 or so) I will consider buying for real.
I'll double-up my purchase here if it gets to those levels. |
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| nickspcs |
| Posted: Fri Jun 02, 2006 12:46 pm Post subject: |
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Investing Sr. Associate
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| I think the stock will tank in the very near future but it will eventually turn around I can not see sun going out of business in the next year. JAVA is awsome! |
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| jmtilsley |
| Posted: Fri Jun 02, 2006 5:07 pm Post subject: SUN will keep a float |
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New Poster
Joined: 01 Jun 2006
Posts: 3
This Month: 0
86.78 e$
Net worth: 4,061.88
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Churn Rate: 0.00%Items
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| Although they are having some tough issues as of now, I think the company will turn it around in the long run; even with the strong competition. Either way this one will be risky business, at least for the next year. |
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| Dave Rathbun |
| Posted: Fri Jun 02, 2006 7:41 pm Post subject: |
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CFO
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| Sun doesn't make any money off of Java, unfortunately. |
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| vetelmo |
| Posted: Sat Jun 03, 2006 7:28 am Post subject: |
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| Dave Rathbun wrote: | That's why I bought only in e$ and not real $$ yet. I think when it gets to sub $4 ($3.90-$3.95 or so) I will consider buying for real.
I'll double-up my purchase here if it gets to those levels. |
Well I certainly hope and don't think it will hit sub $4 I think it might get close. I'm holding my position in it and will buy some more if it does get close to sub $4. |
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