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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 93.75-0.6%Dec 12 9:30 AM EST

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To: sea_biscuit who wrote (1283)4/30/1997 10:47:00 PM
From: Marc Schiler   of 14451
 
Dipy,

The problem with your math is twofold, I think. Your earnings estimate is probably high, but I might be wrong.

The part that is fairly certain is that SGI will never trade at PE of 30 again. Those of us who sat through 6 quarters of disaster will never believe the unending growth promise, which is the only thing that supports a PE of 30. Refactor a peak PE of 22-25 and your best guess on earnings, and you will have a more accurate picture.
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