Silicon Graphics, Inc. (SGI) Message Board

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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 84.64

0.0%

Nov 20 3:59 PM EST

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To: brushwud who wrote (1646)	6/18/1997 9:38:00 PM
From: Carl R.	of 14451

Hey guys, mellow out. 13.5% ROE is enough for a healthy company. Would 20% be better? Sure. But from their low base earnings SGI can produce fabulous EPS growth without a huge 5 yr ROE. Drop to a loss, then show a profit and EPS is way up, and the stock price can follow. Besides, what is the basis on which you are computing the ROE? Are you taking out the Cray writeoffs? Just curious, but what was the ROE the 5 years before the Cray acquisition? Besides, the immediate question isn't whether the long term growth will carry this stock over 100 in 5 years, but whether the immediate quarter's earnings will push it over 20 (or 25). Carl

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