> SGI is the #1 high-performance and computer graphics company in the
> _world_, not scattered like HP's general systems. HP has been
> moving away from workstations for years (in terms of revenue and
> units).
Please substantiate.
> They may be 10x bigger, but they're more than 10x as diverse.
The point of owning a portfolio of stocks is that diversification
reduces risk. Owning a more diversified company means you need
fewer stocks.
> Sure, they make calculators and PCs, but calculators and PCs do not
> a billion $ co. make (Granted, they're great calculators, but the
> margins on PCs suck).
HP isn't a billion $ company. They're a $40 billion company. See
hp.com
If they don't get good margins on PCs, they must be getting really
great margins on everything else, because last quarter their return
on sales was 7.5%. How loooong until SGI can do that again?
> You've got to spend money to make money, and SGI has been doing
> that wrt. acquisitions.
Oh, they bought the farm, all right.
> Look at the revenue curve. Hell, last quarter we did 16% over the
> previous year,
15% according to your own financial PR. And for the 12 months ending
March 31, -2% according to your 10-Q. Even GE grew 13%:
ge.com
> ...and brought in more money than HP did,
HP made almost as much profit as SGI did in sales!
> ...but we're still spending money on merger charges.
Tell me about it.
> Unfortunately, it's taken a while to digest Cray, but rest assured,
> after the charges are over, revenue will continue to rise.
Revenue was rising a lot faster before SGI bought Cray. You seem
like a bright guy--you should know profit is the name of the game.
One can only hope the BoD isn't complacent enough to "rest assured". |
