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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 88.35-0.3%Nov 14 9:30 AM EST

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To: gary who wrote (4815)5/1/1998 3:41:00 PM
From: John M. Zulauf  Read Replies (1) of 14451
 
> From a contrarian viewpoint, SGI is so undervalued it is
> ridiculous.

Let's a mkt cap of ~2B with ~750M of cash... I'd say so.

Having said that, I don't think SGI is a takeover target as they would be a most unwilling bride at this point. I think the company has a dose of new-CEO enthusiasm and a belief that it can make a real dent with on their targeted markets in the next 18 months. Why then would they sell themselves for a fraction of what they'll be worth real-soon-now. The cache of cash says they won't be doing it on a pure survival basis.

Just my humble opinion.

john zulauf
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