Mohammed Sameer's Online Aggregator

I bought some shares in Sun a while back when they were pretty cheap (pre-reverse split, around $4) - I really liked their product line, and liked the noises I was hearing around their free software strategy. For a while, the share did well, at one stage I was up about 50% when the share went over $6.

But then there was a series of things that seem to have shaken confidence - the ticker name changed seemed about as gimmicky as McCain “suspending” his campaign, the reverse split sent completely the wrong message to the market (another cosmetic change, but one that sends a message that you think the price might be going down), and from the heady days of 2007 when we had 5 straight quarters in the black, Sun’s back in the red for the last couple.

With shares now down to pre-split levels, Sun’s lost 80% of its market value in the last year, which leads me to think that one of three things are true:

• Sun is going down the tubes, and the market is singing their requiem - in which case I should sell at a loss, take whatever I can get and call it quits
• Sun is a prime acquisition target - I should probably hold onto my shares in that case and get a little more than current market value
• Sun is a company that will survive and thrive again, and it’s currently undervalued due to the crisis - in which case, I might consider doubling down

Obviously I’m no market expert, and how the share price goes over the next month or so will depend on earnings announced at the end of October - the way things are going, you have to expect those results to be bad. I’m not one to ask for advice like this usually, but I’d appreciate people sharing their insights on Sun’s prospects.