Aside from fundementals -- let's examine the psychology of the the market. In recent weeks, Internet stocks have skyrocketed to unheard of levels, leaving them with P/E ratios in the 4000 - 5000 range, if a P/E at all (many are still losing money). Now let's look at SUNW. It is generating over $12 billion in sales, has billions in the bank, and is generating hundreds of millions in net profit. Futhermore, it is providing most of the internet high-flyers with the hardware, and in many cases software, to accomplish their internet tasks.
Now couple this with the fact that SUNW is slowly evolving into a hybrid -- hardware master vendor and master software (JAVA -JINI) developer. Hmmmm...looks to me like SUNW could be the next MSFT for real reasons -- GREAT PRODUCT, GREAT EARNINGS, GREAT IDEAS. Maybe a new monopoly of sorts? If this stock was an IPO, it would be trading at 1000 rather than 110. If you see the vision, BUY -- IMHO this stock will be at 1000 (presplit price) in the next five years.