Notwithstanding the positive announcement ... our sense is that business conditions remain difficult for Sun thus far in the summer quarter.

While our checks suggest that there was a general pickup in hardware business at the end of the March quarter, this was probably not sufficient for IBM to make our original revenue forecasts.

While notable, this is still not enough to move the needle in a meaningful way as far as earnings -- and therefore stock performance -- is concerned.

While we are lowering our [fiscal 2003 earnings estimates] on lower revenue, we continue to believe there are cost savings-driven opportunities beyond the company's $2.5 billion target.

More importantly, it appears that the December quarter will lack the seasonal punch that Sun and others normally see, suggesting that the first signs of a recovery may not come until June,

Sun's stock has already taken huge blows, is one of the better names in our group and should ultimately benefit from a strong product cycle and an expanding solutions approach, ... For now, however, we think the economic cycle probably has the upper hand.