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 Looking for a profit? How about an Oracle?
Larry Ellison, CEO of Oracle (ORCL-NASDAQ) dreamed up the idea of a sub-$500 machine, with no hard drive, to run applications off of a main server a couple of years ago. However, the descending prices in PCs didn't make the idea stick--until you start thinking about palmtops and digital phones. Hard drives take up a lot of space and weight.
Oracle is well positioned in many areas including next years biggest theme: B2B Internet. Due to its historical background in data base and supply chain software, Oracle will hit the ground running. In fact, the end of the desktop and the advent of the Internet as a B2B marketplace go hand in hand.
The love connection
Oracle has a number of business partnerships as well, including Liberate Technologies, a high-flying digital TV/set top box Internet company. You may know Liberate because they recently signed a deal with Zi Corp. Pass the clicker.
Oracle has its hands in many pockets and is the world's second largest software maker. They also have a speedy network server that allows multiple users to access it at the same time. They obviously will benefit from the death of the PC and any troubles that Microsoft gets into.
But first let's talk about Java.
Hot coffee, coming through!
Taipan's other remarkable prediction of the last year, and there have been so many, was Sun Microsystems (SUNW-NASDAQ) -- the other half of the high tech puzzle.
Java is more than an island in Indonesia (see "Blood Sport").
 Java is more than annoying pop-tart programs on your favorite stock site. Right now, today, in the tinsel-tree, plastic rock world of the Internet you can play games, give answers to polls, do online banking and a host of other things using the Java programming language.
And I know it's hard to believe, but Java can also run on a cell phone or a palm top or even a refrigerator. Isn't the future grand. It sure is, Sally.
Some people believe that 90 percent of the Internet will be powered by a Java wireless device in less than 10 years--compared to the 90 percent who now use PCs. Of course, those people work for SUNW. Regardless, it is a trend worth following. But even independents have stated that no PC devised will account for 50 percent of Internet access devices by 2002.
And remember any bad news for MSFT is good news for SUNW and ORCL. It is a testament to the market that you can call the country's biggest stock a monopoly and the rest of the tech stocks rise. Amazing.
Java has endless possibilities for SUNW and will be everywhere in the next few years. However, Java is not Sun Microsystem's raison d'etre. SUNW moves in a number of business circles, including workstations, enterprise servers, network storage, Solaris Software, Jini, support services, educational servers, and microprocessors.
The downside to SUNW and Java from an investment point of view is that Java is an open platform. This means that it can't wield the monopolistic club that Microsoft has in the past to its own benefit.
If you like it--it will cost you
You pay a lot for obvious market leaders. Oracle carries a P/E ratio of 85 and a market cap of US$83 billion. Sun in burdened with a P/E ratio of 78 and a market cap of US$88 billion. Growth rates are projected to be 24.6 percent for Oracle and 19.6 percent for SUNW. (By the way Qualcomm, and Broadcom (BRCM-NASDAQ) will also benefit from this trend, but that's for another day).
Look for Sun Microsystems, Oracle and Zi Corp to benefit from the decline of the desktop and the advent of the wireless world. There will be many other plays in this field and Taipan will make sure you are well positioned to reap the benefits.
Please read on...
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