Here comes the sun, here comes the sun, and I say it's all right.
-- The Beatles
Get a Leg UpFund managers like Martorelli are banking on some of Sun's new initiatives such as its so-called Niagara-based servers to drive revenue, which it is hoped will flow to the bottom line. Niagara is a new processor that uses less energy and costs less to operate than traditional processors. The servers have received very good reviews for performance and power consumption. Even some sell-siders acknowledge that the new processor has a leg up on the competition. "With Sun and Rackable Systems ( RACK) the only two significant server vendors really addressing these customer concerns in a serious way at this point, there could be market share shifts toward those players coming in the low-end server space," says Thomas Weisel Partners analyst Kevin Hunt, who owns shares of Sun. (Thomas Weisel Partners has an investment banking relationship with the company and makes a market in the stock.)
|The Sun Also Rises |
Value investors' buying reflected in Sun Micro's chart
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