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

To: Paul Haynes who wrote (3385)	10/31/1997 11:03:00 AM
From: James M. Bash	Respond to of 14451

Agreed. This is encouraging... Friday October 31 10:21 AM EST Company Press Release Robert M. Cohen & Co. Initiates Coverage of Silicon Graphics; Analyst Issues Speculative Buy Rating, $30 Price Target GREAT NECK, N.Y., Oct. 31 /PRNewswire/ -- Robert M. Cohen & Co. analyst Keith R. Bossey initiated coverage of Silicon Graphics (NYSE:SGI) with a speculative buy rating and set an 18-month target price of $30 per share. Bossey noted that Silicon Graphics can be valued according to two potential outcomes, first and foremost as a going concern and secondly as a takeover target. The company has suffered a number of temporary setbacks causing the stock price to drop by half. ''Based on an industry standard valuation of 1.72 times sales and flat to slightly down sales for the company, we arrive at a valuation of $32 per share. In addition, the company has $657 million in cash or approximately $3.60 per share,'' Bossey said. More interesting is the company's attractiveness as a takeover target. ''As a takeover target we believe the company would be fairly valued at 1.5 times sales based on recent hardware deals. Therefore, at 1.5 times sales, a takeover target of $28 would be possible,'' Bossey noted. SOURCE Robert M. Cohen & Company