Paul Murphy about the stock...

Paul Murphy wrote an insightful article about the strange reaction of the stock markets on our last numbers:

GAAP to the contrary, the simple version of this is that Sun’s executives ran the business, paid for some new assets, improved the company’s competitive position, and enriched shareholders by about a billion in cash over the same period that its shareholders sold the company down by about one third.

It´s really that strange ... a combination of accounting rules, ignorant traders and uninformed "self-called" analysts driving the stock price to an valuation. I didn´t understood the reaction of the market to our last numbers.

Okay, they were not as good as we hoped, but did that really justified such a large drop? I assume that this drop was initiated by computer trading programs (yes, there are programs "reading" financial news) triggering sales on the news and after this other computer programs followed the same path, because of the drop initiated by the first one. Avalanche effect. The speed of trading is to high to leave this business to humans.

Perhaps the best thing Sun can do on such an weird and disconnected market is a big aquisition: We should take all the cash and simply buy Sun. But Paul wrote a good article about that as well.