Goldman Sachs was already cautious on Sun Microsystems Inc. (NASDAQ: JAVA). But this morning it slashed a prior Neutral rating down to its ugly SELL rating. The firm cited deteriorating fundamentals as the economy weakens and as customers look for more economical alternatives. We would like to take this opportunity to re-highlight why CEO Jonathan Schwartz was one of our 10 CEOs to go for 2009. Shares have nearly doubled off of recent lows. If Schwartz stays on as CEO and continues his strategy, then that run will have been far too much.We haven’t seen any formal trades go through on Sun yet, but shares are indicated down more than 3% if the original indications are accurate.
Jon C. Ogg
January 8, 2009