We would buy in this current weakness.
Demand in Europe remains weak and the US is stable but at anemic levels. Fortune 500 purchases remain slow with little movement toward discretionary projects. Finally, the typical year end surge of Government spending began later than normal in July.
IBM continues to believe that it can hit consensus EPS targets. In a deteriorating environment, this undeniably represents a solid showing.
We think this is important as Sun's ability to compete in the enterprise market depends on its ability to get product out in a timely fashion.
All of tech has been massacred, but our data suggests that storage may weather the storm better since its earnings stream will be more reliable than almost any other area of technology.
We can't make investments (in new track) based just on demand today, but how it will look 10 years from now and beyond.
It is hard to hear Sun's commentary and have any confidence that spending will reaccelerate or that numbers for most of the enterprise sector may not need to come down again. The demand jury is still out, and that's the key issue.