An analyst at Citigroup upgraded Sun Microsystems (NASDAQ: JAVA) today. But that did not help the shares. They are down over 8% and are the most heavily traded shares on the US exchanges. Over 150 million shares are likely to change hands before the closing bell.
24/7WallSt.com wrote that the Sun turnaround, to be engineered by blogger/CEO Jonathan Schwartz, has lost all of its momentum because revenue is growing at only 1%. Improvements in net income are very modest and due almost completely to one-time cost cuts. As we wrote: "Sun's turnaround, Schwartz's big talking point, is over. It did not work. Sun is a 2% to 3% topline growth company in a world where big tech is delivering double digit revenue improvements."
With the shares heading back toward $5, they are barely above where they traded when Schwartz was promoted in April 2006.
Bring back old CEO Scott McNealy. At least he used to make fun of Bill Gates.
Douglas A. McIntyre is an editor at 247wallst.com.
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