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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%.
“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.
Download pdf file “Dear Scott McNealy”  (Merril Lynch, Sun Microsytems)
Does Scott McNealy’s Magic Still Work? 
Lisa DiCarlo, 09.30.03, 1:15 PM ET
Steven Milunovich, Merrill Lynch Global Technology Strategist 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 
Bloomberg News: Analyst pushes overhaul of Sun Microsystems 
Reuters: Sun Micro CEO given options for 1 million shares 
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:
 “Dear Scott McNealy”: http://www.cwes01.com/9093/24013/ds/90479_1_.pdf
 Does Scott McNealy’s Magic Still Work?: http://www.forbes.com/home/2003/09/30/cx_ld_0930sun.html
 Steven Milunovich, Merrill Lynch Global Technology Strategist : http://askmerrill.ml.com/res_article/0,,18692,00.html
 Analyst goes public on Sun’s failings: http://www.guardian.co.uk/business/story/0,3604,1054837,00.html
 Analyst pushes overhaul of Sun Microsystems : http://seattletimes.nwsource.com/html/businesstechnology/2001757203_sunmicro03.html
 Analyst Urges Job Cuts, New Focus for Sun Micro: http://online.wsj.com/article/0,,SB106510574118938400,00.html
 Sun Micro CEO given options for 1 million shares : http://www.forbes.com/technology/newswire/2003/10/02/rtr1098478.html
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