Cramer also said on CNBC’s MAD MONEY that he has hated Sun Microsystems (SUWN-NASDAQ) for very long, but he said new management is doing the right thing. He said he saw it was turning around but didn’t want to believe it. Cramer thinks this sub-$10.00 has $2.00 upside to the stock but you need to wait until after Monday afternoon for the dust to settle so you can make your $2.00 rather than $1.50 by paying up during the hype. The company is going through a restructuring and the turnaround is real. Now the profits in 2007 will be the first since 2002. The cost cuts of $500 million are working and they are taking margins up to 10%. The operating system sales in Solaris are going well too. The IT guys on Wall Street are even considering starting to use Sun machines again like they used to. He likes the KKR deal too with the company.
SUNW traded up 2% after-hours to $6.40 after closing flat at $6.27 today; its 52-week range is $3.74 to $6.78, so he has missed a lot of the turnaround already. This is also essentially a 4-year high.
Jon C. Ogg
February
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