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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 94.27+2.2%Dec 11 3:59 PM EST

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To: Jeff Maresh who wrote (2012)7/25/1997 10:59:00 AM
From: V Lakshman   of 14451
 
Based on McCracken's Reuter interview:

He expects 10%-plus profit margin and atleast a 15% revenue growth year-on-year (he said mid-teens).

This year's revenue was $3.7b. Number of shares outstanding is 177m. Consequently, (my math, not his)

Earnings per share according to McCracken's public estimate:

3700 * 1.15 * 0.10 / 177m = $2.4

Using a PSR of 1.5 (roughly HWP's), share price should be $36 (P/E
at $36 and $2.40 earnings would be 15).

Consequently, if McCracken manages to execute well, we should see
a share price of $36-$40.
lakshman
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