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

To: Bill Holtzman who wrote (3874)	12/23/1997 3:58:00 AM
From: cape radical	Read Replies (2) \| Respond to of 14451

i second your comment. what the hell does PE have to do with anything? i thought the key was free cash flow when valuing equities.

To: Bill Holtzman who wrote (3874)	12/23/1997 3:17:00 PM
From: Mathon Dabasir	Respond to of 14451

Bill, I arrive @10 via simple TA with the current downtrend originating @17 where it averaged for a good while last summer, before spiking-up to 25. These trends are based on SGI's one year chart. The trends are much worse when you look at SGI's 3 year performance. re: Deep single digits with another bad quarter or two. >>2. How do you know people are buying puts?<< I read it in the paper, that's all. Go check it out yourself. If "x" amount of options are being sold, "x" amount of buyers are buying them the way I figure it. >>3. P/E is not relevant. You'll see.<< If it's not relevant, then why even have one? <imho> It's matters most when you compare the earnings valuation of the company to that of its peer group. Yes, losing money in a quarter will crush a stocks' PE. That's reality. Tech stock or not, when investors see a high P/E ratio they should ask why? If future earnings look bright, then so be it. If not, they should use caution. Again <imho>. Mathon