Interesting article in todays San Jose Mercury News positing that Sun is takeover bait. Again.
Despite everything they have tried, including a stock split that was hoped to help the stock defy gravity (it didn't) and a change of ticker symbol to JAVA (blog title), the market cap has continued to slide. As of today, Wall Street values Sun at around $7.54 Bn, a figure less than the current assets value listed for the company as of the end of 2007. Oh, and their annual sales are running close to $14 Bn, which means they trade at barely 0.5x revenues.
Nothing new in the article, nor really much of substance it has to be said, the entire article stemming from a newly published analyst report, but it does remind you just how far and how fast tech giants can fall. Wang, Digital Equipment, Silicon Graphics, Cray, Apollo ... the list goes on, especially in the world of mid-range business & engineering servers.
This is one hell of an industry. Not only does it thrive by eating its own young, it also leaves its elders hung out to dry.
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