Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bill Holtzman who wrote (3719)	12/6/1997 2:02:00 PM
From: Esvida	Respond to of 14451

Talking about CEOs...The SJ Mercury today reports some dragging problem at APPL about its search for a good CEO. The 'most serious' dropped out. Don't I wish to know who that is and if that person now would look at SGI! Now that NT 5.0 is delayed and that Intel seems to waver about Merced commitment with HP because of its new 'ownership' of Alpha, I wonder how that will affect SGI's strategy to turn around. -Al

To: Bill Holtzman who wrote (3719)	12/6/1997 4:59:00 PM
From: Mathon Dabasir	Read Replies (1) \| Respond to of 14451

Bill: I appreciate your support and open mindedness, as well as your opinion on SGI. However please understand, I'm presently not short SGI. Tho I might buy some puts or sell calls if the stock continues up another dollar or two. But, if I sell calls that means I have to buy the stock first. Which is my dilema, I never buy a stock I don't like. And until SGI gets its fundementals in order (CEO, management, gameplan, etc.) I won't like it. <<To me, the stock is not in an earnings valuation mode. It's in a breakup value mode. I don't think an earnings disappointment can knock it much lower than 12+.>> Bill, I humbly disagree. If SGI was in break-up mode it would not carry a 30 PE. That's too high for an asset play <imho>. It's -still- an earnings comeback story in many investors minds. Another negative quarter or two and you can chop that PE multiple down to 20 and SGI's trading 50% lower, just like that. <imho>. And this is my whole point. If they don't have their house in order, how on earth are they going to manifest positive earnings growth again? Mathon p.s. I wish they would hurry-up and do something positive so I can sell some calls! Disclaimer: I have been previously declared "brain dead" by many influential contibutors to this thread. Therefore, nothing I say should be used as a basis for future investment decisions of any kind.