Silicon Graphics, Inc. (SGI) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 93.78

+1.7%

Jan 9 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Al who wrote (1087)	4/18/1997 11:57:00 AM
From: Irv Klein	of 14451

Al, management has been a disaster. The purchase of Cray has been the downfall of the company. I figure if ya chop off Cray, the rest of SGI has been growing at close to 20% a year. Thats not bad and I figure that a bunch of trained apes should be able to adjust expenses enough so as to make money and keep the analysts happy. The effect of Cray has been the bugaboo and I am not sure the SGI team will ever admit as to how much this acquisition has cost the company. But it has been much more than has been written off. From what I understand Cray does not even make the top of the line supercomputer so I guess SGI bought them for some other reasons. Not that I know why. In any case that being said at these prices SGI looks like a good long term investment. Dont panic yet. I also think the effect of the dollar rise last quarter cost SGI about 25 million in revenues right off the top or about $.15 per share. Remember that SGI has about 40% of sales abroad and a 8 to 10% rise in the dollar during January could conceivably have lopped that much off earnings. And finally if I am wrong and things do get worse, SGI will be taken over at prices above 14.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next