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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 88.35-0.3%Nov 14 3:59 PM EST

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To: Don Green who wrote (5141)9/11/1998 2:17:00 PM
From: Justin Banks  Read Replies (1) of 14451
 
SGI is still un-touchable until 2 positive quarters have been shown.

I disagree. SGI won't attract analysts until they meet their (analysts) expectations 2 quarters in a row. One of the problems is that it's been a really bumpy ride, with no clue to analysts what's going on. Even if SGI loses money, as long as the loss is in line with the expectations, people will start to feel better. I think that there's probably going to be another quarter or so of losses, but as long as expectations are appropriately set, this shouldn't cause a panic. What was (and would be) disasterous is something like last year, when there was a blowout of expectations, followed by a serious shortfall. Analysts don't mind the losses as much as they mind the unpredictability. If management can call a couple of quarters, it says a lot about how far SGI has come.

Always speaking for myself, and not for SGI

-justinb
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