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Showing posts from November, 2008

SUN Microsystems Possible Spiral Death?

I have always thought that SUN Microsystems is a confused company. Their strategies are unclear and they always sent mixed messages to the industry. While Scott Mcnealy was CEO, he guarded Solaris and JAVA while launching Linux initiatives.

Today I read in Reuters and IT Business Edge that SUN Microsystems is trying to avoid failure by finding a Buyer and after they had cut a deal with their one-time mortal enemy in order to get some much needed cash. Sun shares have nose-dived 77 percent this year, more than double the decline in the Nasdaq Composite Index .IXIC, to around $4 per share, a 13-year low. The stock is down 98 percent since year 2000, the peak of the dot-com boom. On top of that, in October 2008 they reported a US$1.7 billion quarterly loss!!! This has created speculation that the firm will be sold. But for what price do you sell a company that is losing US$1.7 billion a quarter, in a Buyer’s market?

Sun is a very complex company that would be very difficult for those tha…