Shorts Flee Sun Micro (SUNW)
If the world of short sellers in any indication, Sun Microsystems has better days ahead. The short position in the big hardware company fell 21.6 million shares to 38.2 million in mid-July.
It's good news for Sun shareholders.
The company has already demonstrated that it may be in the early stages of turning the corner. Revenue in the last quarter hit $3.83 billion. Sun's EPS and revenue were both better than the Wall St. consensus. Investors were particularly pleased to see service revenue up 25% to $1.3 billion. This unit probably has more promise that the computer systems part of the company.
The stock rose on the news and now stands at $4.27, up 20% from its 52-week low.
If the shorts keep moving out, or get pushed out, of the stock by a rising share price and improved results, the stock could run back toward $5.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies that he writes about.
It's good news for Sun shareholders.
The company has already demonstrated that it may be in the early stages of turning the corner. Revenue in the last quarter hit $3.83 billion. Sun's EPS and revenue were both better than the Wall St. consensus. Investors were particularly pleased to see service revenue up 25% to $1.3 billion. This unit probably has more promise that the computer systems part of the company.
The stock rose on the news and now stands at $4.27, up 20% from its 52-week low.
If the shorts keep moving out, or get pushed out, of the stock by a rising share price and improved results, the stock could run back toward $5.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies that he writes about.
posted by douglas mcintyre at 9:12 AM
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