- The Big Picture - http://www.ritholtz.com/blog -

Analyst Activism, Anyone?

Posted By Barry Ritholtz On October 2, 2003 @ 10:29 am In Current Affairs,Finance,Web/Tech | Comments Disabled

Merrill lynch’s Steven Milunovich seen dabbling in hubris this morning, as he puts out a scathing “open letter” to Sun’s CEO Scott McNeely.

Its always dicey when one attempts to fathom what is motivating someone else. I have no idea what is behind this stock analyst’s thought process — is he looking for buzz, for banking business, sucking up to another firm? Is he genuinely interested in saving Sun? I have no idea.

Note that Steven Milunovich’s title at Merrill Lynch is “Global Technology Strategist,” so his area of coverage is pretty broad. Still, it seems rather odd for an analyst to be calling for a wholesale makeover of a company, including layoffs of 20%.

Forbes observed:

“Milunovich believes that Sun’s software strategy, particularly its aggressive pricing, could be disruptive to Microsoft and IBM but that the company “faces an uphill battle with its against-the-grain strategy of Solaris on Intel and Linux on the desktop.”

Read it and judge for yourself.

Sources:

Download pdf file “Dear Scott McNealy” [1] (Merril Lynch, Sun Microsytems)

Does Scott McNealy’s Magic Still Work? [2]
Lisa DiCarlo, 09.30.03, 1:15 PM ET

http://www.forbes.com/home/2003/09/30/cx_ld_0930sun.html

Steven Milunovich, Merrill Lynch Global Technology Strategist [3]http://askmerrill.ml.com/res_article/0,,18692,00.html

UPDATE: 10/3/03 6:29 am
Here are some additional stories since yesterday

Guardian: Analyst goes public on Sun’s failings [4]

Bloomberg News: Analyst pushes overhaul of Sun Microsystems [5]

WSJ: Analyst Urges Job Cuts, New Focus for Sun Micro [6]

Reuters: Sun Micro CEO given options for 1 million shares [7]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2003/10/analyst-activism-anyone/

URLs in this post:

[1] “Dear Scott McNealy”: http://www.cwes01.com/9093/24013/ds/90479_1_.pdf

[2] Does Scott McNealy’s Magic Still Work?: http://www.forbes.com/home/2003/09/30/cx_ld_0930sun.html

[3] Steven Milunovich, Merrill Lynch Global Technology Strategist : http://askmerrill.ml.com/res_article/0,,18692,00.html

[4] Analyst goes public on Sun’s failings: http://www.guardian.co.uk/business/story/0,3604,1054837,00.html

[5] Analyst pushes overhaul of Sun Microsystems : http://seattletimes.nwsource.com/html/businesstechnology/2001757203_sunmicro03.html

[6] Analyst Urges Job Cuts, New Focus for Sun Micro: http://online.wsj.com/article/0,,SB106510574118938400,00.html

[7] Sun Micro CEO given options for 1 million shares : http://www.forbes.com/technology/newswire/2003/10/02/rtr1098478.html

Copyright © 2008 The Big Picture. All rights reserved.