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

To: Don Green who wrote (4769)	4/25/1998 12:16:00 AM
From: JC	Respond to of 14451

Does anyone know how much SGI originally paid for MIPS? I hope less than $400 million (the approximate valuation of MIPS' June IPO)...

To: Don Green who wrote (4769)	4/25/1998 12:22:00 AM
From: P.M.Freedman	Read Replies (2) \| Respond to of 14451

It will be very simple. You own SGI shares and SGI owns MIPS shares. The company will receive money from the IPO of MIPS, so does your SGI share value. Remember, MIPS share value will be calculated based on SGI share value when MIPS goes public. This means the SGI share price will be inflated before the IPO of MIPS. Last year SGI has announced a stock repurchasing plan for 7 million shares and later on they modified the number to 12.5 million shares. The repurchasing suppose to be completed by June!!! They will use this plan as a tool to lift the prices. Plus the new CEO's reconstruction and last quarter's tax return from the big loss, SGI will be well positioned for a upside moving. So, what are you guys waiting for?! Load up! The coming big short covering will push the prices over $20 in a relatively short period. There are over 6 million shares on shorting!!! Don't you see SGI price kept steady today? It was a good sign. Good luck and happy investing!