The Sun: Not About to Set Anytime Soon

Last Sunday, it was announced that IBM ended up withdrawing their seven billion dollar offer to get Sun Microsystems. After this announcement, a lot of observers thought that there would be a collapse in the stock of Sun Microsystems as a result. Such is not the case, though – for many industry analysts have been wondering if there might also be a new deal brewing around in order to salvage the Silicon Valley pioneer.

Steady Price Amidst Announcement

The shares of Sun Microsystems (JAVA in NASDAQ) had opened in the start of the day being down by around twenty five percent to rest at six dollars and thirty cents. However, the price of their shares has been steadily holding on all throughout the entire day. It was reported that it had been hovering between the rates of six dollars and thirty six cents and six dollars and seventy two cents. Rob Enderle, a member of the Enderle Group also says that their stock must be cratered and also remain cratered. There were more remarkable news regarding just exactly how many shares had changed hands. Basing it on the averages collected over the past three days, around nineteen million shares of Sun Microsystems have been traded even on a daily basis. As of today, however, ninety two million shares of Sun Microsystems have been traded – which is an increase in four-folds.

Shares Are In Play

Enderle also maintains that the fact that these shares have been holding up is that all the shares trading are only indicators of the stocks of Sun Microsystems being at play. Of course, it is not fully clear as to who is doing the buying. There have not been any specific names being mentioned, says Brian Sozzi. Brian Sozzi is a research analyst working for the company Wall Street Strategies. He goes on to say that if for anything, he believes that IBM or quite possibly Cisco is in charge of making these runs. There is a possibility, of course, of the fact that there might also be some persons or also entities that are looking to get their ownership status – something that could probably be an obstacle to the possibility of sun closing a deal with IBM. Many reports show that Scott McNealy, who is the chairman as well as co-founder, is also doing what Yahoo’s Jerry Yang did during the latter’s experiencing an offer from Microsoft. It created a lot of resistance that it ended up scuttling their deals. Having fourteen million and five hundred thousand shares in their possession means Mc Nealy is a holder of around two point three percent of the entire company, as well as a person who has major controlling interest.