Shares of Sun continue to set. A week ago, the stock dropped 19% to $3.85. I wrote that you should wait a while longer to buy back in. The stock poked its head above $4 and is now down at $3.74. I’m still holding out for cheaper prices. I think $3.50 is almost guaranteed and would not be shocked to get back in at $3. That would be a price roughly 41% lower than where I sold at the beginning of June.
Share prices are now trading below the exercise price of Sun CEO Scott McNealy’s recent grant of 1.5 million options. His exercise price is $3.85. What does that mean? That the company sees its future as being worth more than the current share price. That’s good to know. Nobody knows Sun’s potential better than Sun itself.
There’s no rush to get back in. Steady your hand and enjoy summer’s sidelines.
