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Thursday, September 21, 2006

The Sun Also Rises (SUNW)

Sun Microsystems has been down for a long, long time. After several restructurings and the launching of a new SPARC chipset, and its apparently successful purchase of StorageTek, Sun is on a bit of a roll. Sun was the only large server company to gain share in the last quarter according to IDC .

In the June quarter, Sun turned in its best revenue quarter in several years with revenue of over $3.8 billion.

The market quietly saw Sun’s recovery coming. Over the last year, Sun’s stock has outpaced that of its three major rivals: Dell, Hewlett-Packard, and IBM. Sun’s stock is now up almost 30% from a year ago. At $5.16, it trades near its 52-week high of $5.40. The stock is nearing a level where is last traded in late 2004. With another solid quarter, it could top that.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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