A stark reality check for Sun
Ashlee Vance has an interesting article on the future prospects for Sun Microsystems now that its market cap is $7.7B. Sun needs to maintain at least a $10B market cap to remain a potential holding of large cap funds. If Sun's market cap slips below $10B for too long, large cap funds holding Sun will have to sell and thereby cause a further drop in Sun's market cap. With short interest growing from 25 million shares to 57 million shares over the past month, compared to a 3-month trading volume of 17 million, the sharks are definitely circling.
Open Sources | Rodrigues & Urlocker | InfoWorld | Who would buy Sun? | July 11, 2008 03:00 AM | Savio Rodrigues
Post a Comment