Tuesday, May 23, 2006

Sun stock price - technical analysis

SUNW has been experiencing a lot of technical trading recently. The share price has broken down through resistance levels of $5.00, $4.50, and is likely to touch $4.20 before rebounding quickly to $5.00. Taking a look at the price over the past year, it appears to be leaping upwards in ever-greater bounds. Here are some factors that are likely to produce the next leap:

  • At a price below $4.50, analysts are more likely to upgrade the stock
  • Very soon, Sun and Ubuntu will announce that Linux runs fast on Sparc chips
  • I get the feeling that Sun, Red Hat and JBoss are planning something good
  • Mike Lehman, CFO, is about to announce head count reductions
  • Revolutionary new Sun storage products will be announced very shortly

So while the guys who bought at $5.00 are being "shaken out" at a price of $4.25 or so, maybe it's time to be contrarian and start to pick up SUNW at what will appear to be a cheap price in a month or two?

Tuesday, May 09, 2006

Sun and Oracle - the romance ends?

Recent news from Sun makes it appear the Oracle romance might be at an end. Sun has annouced N1 support for SAP to give it a leg up in the SAP marketplace. It is also including PostgreSQL in the next release of Solaris 10 in June. It sure looks like Larry Ellison is being given the cold shoulder.

This is good for Sun. Since Oracle never got with the open source thing the romance has been on the rocks. The old days of Sun E25k servers running huge Oracle databases have gone. The zeitgeist is with FOSS and that's where Sun is headed.