Comment Re:$2B is the paper loss, $10M operational profit! (Score 3, Insightful) 481
"some accountancy stuff that mean diddly to the companies operations" ?
Losing $2 Billion in asset or "paper" value is a huge deal for where it counts. Banks, investors, fund advisors, et. al. will never loan money to a monster company like this that loses value so rapidly. It's the equivalent of your house going down in value from $500,000 to $50,000 -- sure you still have the house and will get a lot of use from it, but you couldn't even get a Kia car loan with that. And if you think that Sun needs to make some drastic changes quick, they just lost alot of flexibility to do so.
No, $1.5 billion in cash and "cash equivalents" may not be enough to turn this once great company around. What that does is let it keep doing what its doing for the next x years as they slowly wither away (think SGI).
Unless somebody bets the farm, which is what I hope this thread will spur McNealy and crew to do. N1 isn't it and ironically IBM has taken the "king of Java" crown away.
Losing $2 Billion in asset or "paper" value is a huge deal for where it counts. Banks, investors, fund advisors, et. al. will never loan money to a monster company like this that loses value so rapidly. It's the equivalent of your house going down in value from $500,000 to $50,000 -- sure you still have the house and will get a lot of use from it, but you couldn't even get a Kia car loan with that. And if you think that Sun needs to make some drastic changes quick, they just lost alot of flexibility to do so.
No, $1.5 billion in cash and "cash equivalents" may not be enough to turn this once great company around. What that does is let it keep doing what its doing for the next x years as they slowly wither away (think SGI).
Unless somebody bets the farm, which is what I hope this thread will spur McNealy and crew to do. N1 isn't it and ironically IBM has taken the "king of Java" crown away.
