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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (8974)	7/2/1999 10:53:00 AM
From: David Helms	Read Replies (1) \| Respond to of 57584

Re: SGI Taken from a poster on the SGI Board from a story in TheStreet.com. Why Silicon Graphics, With Minimal Downside, May Be Looking Up By Adam Lashinsky thestreet.com Warning: This URL probably requires a paid subscription to access The by now familiar argument that SGI is undervalued when one considers the value of its MIPS holdings and cash position. Also, some speculation that SGI will break even this quarter. Here is a quote. The upside of owning SGI may be questionable, but the downside clearly is minimal. That's because although SGI's overall market capitalization is $3.2 billion, its investment in spinoff MIPS Technologies (MIPS:Nasdaq) alone is worth $1.4 billion. Add in the $750 million in cash and short-term investments SGI holds ($200 million from the sale of MIPS shares in May plus $550 million at the end of March), and the rest of SGI is worth just $1 billion. Considering the company's annualized sales are $2.7 billion, this company isn't even trading for one times sales when you back out the MIPS stake.