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

To: Ms. Baby Boomer who wrote (9918)	4/23/2002 11:22:37 AM
From: Thomas A Watson	Read Replies (1) \| Respond to of 14451

this_sun_is_rising_fast who is this masked man????? SGI is a sleeping giant in terms of its beautiful technologies. It has a killer combination of high performance broadband and digital computing technologies and solutions. Revolutionary Numaflex modular single-image architecture, extremely powerful transmission technology, excellent storage technologies and solutions, critical intellectual properties (both software and hardware), 3D visualization, world class simulation technology, graphical expertise, vedeo/movie-on-demand complete offerings, pioneer and absolute front-runner in satellite broadcast streaming, ... , ALL under ONE roof. I can say with confidence that SGI right now is operating in a profitable business model. They are most likely to hire more people in the very near future as their business is beginning to grow by leaps and bounds. Excellent people are to start to join SGI as they see the TREMENDOUS POTENTIALS of SGI ahead. now I know I would find this place a great place to work, selling the systems that truly make America and the world a better place to live. Did SGI ever say in a public press release a single word something like "the adverse effect of not being able to get financing will result in ..." or any cautious comments as to its business viability in the future... during the months between April and October when all those unfounded, unresponsible bankruptcy rumors, the negative impact of the departure of the CFO (not because, I believe, of business viability), and the inevitable revenue declines in the midst of corporate restructurings ... together sent the stock price collapsing. The past is the past. Sgibull says it so correctly. $3-5 should have been the fair value of SGI during the time when SGI was losing money. If the company is going to be breakeven and with guidance of profitability, the stock should be within the range of $5-8, $5 indicating the doubt that the company will be profitable because of past management mis-guidance; $8 indicating the possibility that the company will be improving solidly on the top and bottom lines AS WELL AS the understanding of its unique powerful and beautiful technology. Aside from the above, there are still many factors that could have an impact on its stock price, such as: -making significant strikes in certain fronts of its business, like the defense segment, the broadcasting and media commerce, and Governments. -potential buyout by a bigger company with the financial and corporate resources to quickly make use of SGI's technologies, to rapidly and effectively apply and deploy it, to further accelerate the enhancement of it with the help of a bigger R&D budget. -strategic business alliance: to cross sell products, to license its intellectual properties to OEM, or just to let other biggies to also market and sell its products under their brand names (a common business practice) -stock buy back: once SGI starts making money, it will accumulate cash very rapidly. Simply put, earnings plus depreciations will be the cash flow. For the sake of understanding, if earnings is 100M yearly, depreciations is also 100M yearly, then SGI will have $200M cash to use. But stock buyback won't kick in until they have the spare cash. Please don't say how they burned cash before, because they were in the process of restructuring, re-grouping, re-focusing, and re-inventing themselves while having the inevitable revenue declines and operating losses. They are causes and results to one another. I firmly believe the prospect of SGI is tremendously huge, and hence its prospect of very significant profitability. It will be continued sustained profitability for the years to come based on what I see now. In my view, SGI is a sleeping giant in terms of its powerful and beautiful technologies. SGI is only to begin to show the world what can be done. The commercial servers market I truly believe is what SGI is eyeing. They are going to strike BIG there. SGI will be at the heart of the next internet buildup. post.messages.yahoo.com tom watson tosiwmee