The Five Dumbest Things on Wall Street This Week

2. Sun Isn't Rising

Wall Street still isn't taking a shine to Sun Microsystems (SUNW Quote).

New chief Jonathan Schwartz made his first big move Wednesday, unveiling as many as 5,000 job cuts at the Santa Clara, Calif., server giant. Sun, which has been losing money for years, said the retrenchment envisions "accelerating Sun's return to consistent profitability."

But as was the case when Schwartz was appointed CEO in April, investors expressed disappointment at Sun's leisurely pace. Shares sank 4% Thursday.

"At the outset, I know these changes will be tough for many employees," Schwartz said in conference-call remarks posted on his blog. But he promised Sun will become "leaner and more efficient" and "simpler to understand."

That sounds admirable, though one analyst calls the cutbacks "the bare minimum," The Associated Press reports. The analyst, Brent Bracelin of Pacific Crest, notes that Sun still doesn't see an operating profit till mid-2007.

Sun also dropped its poison pill. The company -- whose stock market value exceeds $15 billion despite a 90%-plus drop in its share price since 2000 -- had adopted the shareholder rights plan back when Scott McNealy was CEO.

Toward the end of his reign, McNealy was criticized for taking home ample pay, despite the stock's plunge. But Schwartz says dropping the poison pill is "indicative of Sun's reinvigorated commitment to maximizing shareholder value and enhancing the company's already stellar reputation for tight corporate governance protocols."

Stellar reputation? Way to reach for the stars, Jonathan.

Dumb-o-Meter score: 90. McNealy last month named his 10 favorite things about no longer being CEO, the San Jose Mercury News reports. No. 9? "No longer on the most overpaid CEO list."