One of the year’s biggest technology deals – Sun Microsystems’ $4.1 billion, $37 a share acquisition of Storage Technology – has become the subject of an investigation by the Securities and Exchange Commission.

The SEC, I’ve learned, is investigating trading in the shares and options of Storage Technology prior to the June 2 public disclosure of the agreement between the two companies. Specifically, the commission is focusing on the runup in Storage’s stock that preceded the official announcement and, more specifically, the trading that took place between May 1 and June 1.

In conjunction with its probe, the SEC recently sent inquiries to the brokerage community in which it requested the names of all clients, both domestic and foreign, who traded in Storage’s securities during this period.

From May to June, Storage’s shares rose about 12.5%, with the stock in some sessions trading above average volume.That gain was more than threefold the 3% rise in the S &P 500 in the same period.

Whether the SEC has contacted Sun or Storage could not be immediately determined. Neither company responded to calls seeking comment.

The SEC, which refrains from commenting on individual investigations, declined comment. However, a compliance contact at the NYSE confirmed the Storage trading probe.

I’ve also learned that the SEC is conducting trading investigations into the shares of two over-the-counter biotech companies: SuperGen and Keryx Pharmaceuticals. Here again, it’s seeking the names of all parties who traded in the stocks during specific periods.

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FROM RUSSIA WITH LOVE: Many Americans, maybe President Bush among them, distrust Russia and its president, Vladimir Putin. But that doesn’t mean they should distrust its stock market.

That’s the view of John Connor Jr., manager of the Lake Wales, Fla.-based $55 million Third Millenium Russia Fund, who just returned from a 10-day business trip to Russia that reinforced his favorable view of both the country’s economy and stock market.

“Russia has had a lousy image for years and conventional wisdom is you don’t put a dime there.” he said. To the contrary, he believes “Russia is a sound place for American investors if they want to make money” and he recommends 1% to 2% of their portfolios should be in Russian stocks.

Given the sparkling record of his 6-year-old fund – an average 35% annual return – Mr. Connor, at the very least, merits a respectful hearing.

At present, the Russian stock market – up 3% so far this year, following gains of 9% last year and 20% in 2003 – boasts a steadily growing market capitalization of about $250 billion. Foreign investments in the market run an estimated $20 billion, with around $6 billion of it American.

Our Russia booster ticks off a number of reasons why he thinks the Russian market belongs in your portfolio:

* The country is awash in liquidity and has an investment-grade rating from both Moody’s and Standard & Poor’s.

* The economy has grown about 7% a year the past six years and Mr. Connor sees another two to three years of 6%-7% growth.

* Corporate profits, on a strong, upward trend, rose 20% last year and Mr. Connor sees a heftier 25% rise this year.

* The country boasts growing central bank cash reserves of about $145 billion.

* Russia is the world’s biggest exporter of commodities (such as steel, gold, oil and gas, platinum, and fertilizers).

* Though inflation is high (11%), it’s down from the hyperinflation days of the mid-1990s.

* Low price-earnings multiples, with the average in the 6-7 range.

* Excellent securities laws.

* Communism is gone.

Mr. Connor feels an American fund – there are about six specializing in Russia, including hedge funds – is the best way to play the Russian market.