Dell, HP gain over IBM in server market

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Ray of SUN-shine?

From the story: "Sun, which has begun aggressively selling
Opteron servers, rose to seventh place with 1 percent of
the [x86] market."

This might be the only piece of good news for Sun. Their
main business has dropped but it isn't gone yet, and they're
making inroads to the x86 market, primarily hitched to
AMD's flagship Opteron. I believe they only entered the
x86 market a year ago, so to have 1% of the market (while
trying to maintain their old core business) is actually pretty
good.

At less than $4.00 a share, speculators can get Sun stock
cheap if they have faith that the company will build strong
x86 success. My main question is whether they can move
their old customers to x86 without having them leave Sun.
If they pull that off while expanding their x86 market share,
it might save them and build up AMD at the same time.

The downside of that speculating on their stock is that if
they falter, they'd be an unattractive take-over target (their
market cap is over $13 billion). That pretty much closes
that possible rescue option unless their stock tanked to
below $1.00 a share.

I once owned Sun stock, but it was basically flat for two
years and I sold it this past January. A couple more good
x86 quarters and I might just buy back in.

Posted by: bidemytime   Posted on: 05/26/05 You are currently: a Guest | Members login | Terms of Use

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