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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: BC who wrote (6406)	8/13/1999 5:39:00 PM
From: Maher Sid-Ahmed	Read Replies (1) \| Respond to of 14451

This is a company with a book value of $7.06/share and cash + investments position over $700 million dollars. They have a working capital of $968 million. Their intrinsic value is definitely worth much more than $12. Their loss from Cray computers is ~$800 million. Without that loss they should earn above $2.00 per share. The market as usual is giving away that stock at bargain prices, and like the scenario with Apple the market will in a year consider that stock attractive when it hits $50. The plan that RB has to get rid of the parts that are weighing down on SGI is a logical plan. The over-reaction of the market is typical of mass frenzy over nothing. Recall Apple went down from $22 to $16 when Jobs laid off workers. Analysts wrote he is only making profits because of manpower trimming and how does he expect Apple to be innovative if he is trimming his work-force. Now everybody wants in on Apple shares. SGI will face the same turbulence in stock value, you just have to have patience. IMO. Maher