Sun downgraded to Goldman Sachs sell list The stock and probably the collective psyche of server and operating system maker Sun Microsystems is taking some hits today as an IT watcher at Goldman Sachs put the company on its sell list. Sun has been on a lot of sell lists in recent years, of course, as it has struggled to even maintain sales, much less get profits, in …
...is anyone still taking Goldman Sachs seriously? That pile of steaming dogshit should be dead and buried by now. Starting with illegal pump-and-dumps during the dot-com boom it contined in a straight line to the current subprime blowout which it only survived because it managed to get on taxpayer dripfeed to the tune of USD 10'000'000'000. It's always good to have a master bandit like Henry Paulson as ex-chairman, eh?
Reg, Timothy - tut tut - do you still believe analysts?
Have a look at Chris Mayer's blog
http://www.whiskeyandgunpowder.com/mindless-risk-taking/ and please note the header - mindless risk taking. He comments on Charles Ellis’ new history The Partnership: The Making of Goldman Sachs And they can influence the value of another companies share prices? What were / are we thinking??
Remeber the .com boom? The financial meltdown a few weeks ago? How could analysts not see that comming. And do you base your retirement investment on analysts advice? Don't answer that!!!
Paris as I am sure she has more financial know how
Most analysts are little more than glorified astrologers, so I don't worry too much about Bailey's downgrade.
While there is no doubt this is going to be a very tough year (for pretty much everyone), lets not forget that Sun doesn't have a glass jaw because the long term liabilities don't come anywhere close to the liquid cash assets...which means that even if the creditors all get the jitters and call in their debts, these can still be paid (unlike for other high profile corporate failures in the past).
Hence, the market has so far failed to deliver a knock out blow, despite years of negativity and pessimism. This doesn't, of course, mean there's not a huge challenge to face but I do believe Sun will make it through the recession, whereas a few others probably won't.
Erm, you are aware, aren't you, that GS didn't have any choice about taking the $10bn, right?
Paulson told them, along with Citi ($25bn), JPM ($25bn), BoA ($25bn), Morgan Stanley ($10bn), Wells Fargo ($25bn), Bank of New York ($3bn) and State Street ($3bn) that they would have to take the funds whether they were needed or not, because he didn't want some banks to give the impression of more vulnerabilty than others. GS were one of the few banks that made a net profit in 2008.
Nobody knows whether any of the banks would have survived without the injection (well, other than Citi, obviously), but get your facts right.
Most banks in the world are taking taxpayer bailouts, as are other companies (GM/Chrysler, and possibly Ford), and there will be lots more to come. You can argue that the banks (including GS) were responsible for the subprime crisis, but that doesn't mean their IT analysts are suddenly irrelevant.
>> Paulson told them that they would have to take the funds whether they were needed or not
So your ex-chairman stuffs you full of dollars you actually don't need, whether you want or not. This either means a big party with stolen money is in the pipeline or someone is telling lies like there is no tomorrow. Probably both.
>> GS were one of the few banks that made a net profit in 2008.
How can they know that in the first place in January 2009? Probably didn't yet check their books yet. Or they don't care. Or maybe they just booked the 10 billions to the lower right end of the balance sheet.
>> that doesn't mean their IT analysts are suddenly irrelevant.
They have been irrelevant from the beginning I guess.
Sun has probably more than half a billion $ left for stock repurchases, that is a lot of shares at 3$ a share, so I am skeptical about this analysts prediction.
For the ones talking about the death of Rock, support has be added for it on OpenSolaris, bugs are filed against the platform...
At some point, I think it will make sense to merge Niagara and Rock however...
Sun got crushed in 4Q. It always amazes me it takes them longer to close the quarter than companies 5 times their size. I know SPARC is slow but this is ridiculous. The company has gotten smaller and they now take longer to close the books?
I also heard all the Rock people who did not get RIF'd got moved to Niagara 3
It's simple to see SUN's new direction just by looking at their job boards...and it is to beome
like AMD and create yet another Intel x86 microprocessor...
It looks like the SPARC architecture is dead, and now only needs an official announcement from the pony-tailed one in charge...
Take a look at these 3 new job postings:
PRINCIPAL ENGINEER DP 7 req. #561916
Own and accountable for microarchitecture definition that meets performance, cost, functionality, and delivery to schedule of an advanced x86 microprocessor.
PRINCIPAL ENGINEER DP 8 req. #561919
Proven track record in working through all phases of product development leading advanced server class x86 microarchitecture, design, verification, and productization for microprocessor design groups. Recognized as an x86 design expert in XT and Microelectronics Groups and is sought out and engaged on difficult design, and productization situations.
PRINCIPAL ENGINEER, SOC ARCHITECT req. #561350
Intimate understanding of PC architecture, including north and south bridge, high performance memory controllers, cache coherency, x-bar switches are required. Logic design of previous SoCs and/or chip sets as an architect is high desirable.
"the future "Supernova" servers and their "Rock" UltraSparc-RK processors might not see the light of day. Thus far, there have been no indications from Sun insiders that Rock and its servers are not going to be announced in the second half of this year. But it is easy to imagine Sun..."
THERE HAVE BEEN NO INDICATIONS?
WHY ARE YOU IMAGINING IT?
BAFFOONS!
LOL!
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