A Viking Funeral For Sun Microsystems (JAVA)

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By Douglas A. McIntyre Published

Sun Microsystems (JAVA) hit a new 52-week low of $12.32. The market has believed for some time that the server company will have a poor year with relatively flat revenue and little or no operating income.

Sun has not been part of the recover in tech stocks. Since the beginning of the year, JAVA is down almost 30%. Shares in HP (HPQ) are off a little over 7% and IBM (IBM) is up 10%.

Wall St. is unlikely to bid the price of the shares up unless the company’s board is prepared to replace management or break the company into pieces. Sun has three core business: hardware, storage, and support and professional services. In the last quarter, product revenue for the company was $2 billion and service sales were $1.26 billion.

Sun’s shares have nowhere to go, if the firm continues to be operated in its current form.

Douglas A.McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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