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

To: Mathon Dabasir who wrote (3881)	12/23/1997 7:56:00 PM
From: Bill Holtzman	Read Replies (1) \| Respond to of 14451

Mathon: << Who cares how much cash is flowing if you're -losing money- flowing it? >> Ask this question on the AOL thread! Bill

To: Mathon Dabasir who wrote (3881)	12/24/1997 2:16:00 AM
From: cape radical	Read Replies (1) \| Respond to of 14451

i don't mean to be disrespectful, but the first thing you learn in finance is that earnings don't matter. i could give a number of examples illustrating this point, i.e., is R&D an expense or an investment? the PE ratio can also obscure the prices of shares where debt is used wisely and not at all. remember that value = present value of all future cash flows at any rate, SGI has had a very disappointing return on invested capital, and that is why it's price is so "low". you are correct in portraying SGI as a financial underperformer.