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

To: Mike Chen who wrote (3429)	11/4/1997 1:14:00 AM
From: Paul Jamerson	Respond to of 14451

I agree with you about the downside versus the upside of the Intel versus SGI. Intel has more downside risk than SGI. SGI has very little downside risk at this price. Investors understand there is little downside risk, but they also understand that future business will be difficult. This is the reason for the low PSR, since PSR is based on past SALES and price is based on future potential earnings. Companies like SGI have lots of upside potential, but the question is when will the upside come. If SGI comes out with positive earnings the price will go though the roof. Remember the last time the quarter was positive. I won't touch the company until SGI could show a clear road map and demonstrate the vision that it knows what to do to get there. My prediction is that SGI will trade at very narrow trading range, $1-2. Today's action will be typical, the market will go up or down by >100s and SGI will move by ~$1. This is not to say that I won't buy SGI. If SGI hits $10-$12, I will buy as much as I could. This is my opinion, I've been right and wrong in the past. Fortunately, I've been more right than wrong. Hopefully this will continue. Good luck.