DG> Jane all I need to know is displayed on the chart. SGI has broken down again, and is now trading below it's 15 DMA & 50 DMA.
Somebody knows something and they don't like what they see.
dg> Jatin Thanks!
Silicon Graphics Down Again Wednesday; Goldman Note Cited
By: Maxwell Murphy, Of DOW JONES NEWSWIRES
Wednesday April 3, 7:53 pm Eastern Time
NEW YORK -(Dow Jones)- Silicon Graphics Inc. (SGI) shares fell further Wednesday, slipping 12% a day after Goldman Sachs trimmed its earnings estimates for
two of the company's biggest competitors.
The Mountain View , Calif. , computer maker did not release any news on Tuesday, when shares fell 11%, or Wednesday.
An SGI spokeswoman said one of the reasons for the stock-price decline may be the Goldman research note.
Analyst Laura Conigliaro, in a research note Tuesday, trimmed her earnings estimates for computer hardware makers like International Business Machines Corp. (IBM) and Sun Microsystems (NasdaqNM: SUNW - news) Inc. (SUNW), two of SGI's bigger competitors. Conigliaro said these companies are still suffering from weak demand and intense competition, and the March quarter was even more back-end loaded than in the past as customers delay orders as long as possible.
The spokeswoman also mentioned worries about SGI's "sensitivity to macroeconomics," and a more prolonged economic recovery than expected.
She also said some suggested that $4 represents a resistance level, and since the stock crested above that level on no news, it might simply be similarly retreating. Shares broke $4 in early March, traded at a 52-week high of $4.85 on March 13 , and have mostly been falling since, heading back below $4 on Tuesday.
One of the largest holders of SGI stock, who requested anonymity, said he believes the Goldman note drove the heavy selling. He declined to say if he sold any shares.
SGI shares fell 45 cents, or 12.2%, to close at $3.25 on Wednesday, on volume of more than 3.9 million, compared with a daily average of 1.7 million.
50 DMA now 3.69 |
