Investing
Sun Microsystems (JAVA): A Mistake For Southeastern Asset Management
Published:
Last Updated:
Somehow the people who run Southeastern Asset Management got it into their heads that Sun Microsystems (JAVA) is a good investment. Southeastern now owns $1 billion of Sun stock. According to the The New York Times, most of that has been purchased since March.
Since Sun is down over 40% in the last six months, Southeastern may already be taking a beating. The money management firm says it likes the Sun stock buy-back program and its move toward using open source software.
Quite frankly, no matter how positive those aspects of Sun’s situation may be, it is a dead company, Revenue is almost flat and is expected to stay that way for the next few quarters. The firm does little better than breakeven.
Sun’s stock is down because it is being pushed and priced out of it core server business by larger companies like IBM (IBM) and HP (HPQ). It would be nice to believe that one of those firms would buy Sun for its market share. Even with JAVA near a 52-week low, there are no offers.
The competition must feel that Sun is so crippled that buying it is not worth the expense.
Douglas A. McIntyre
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
