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

To: Brett Behm who wrote (4902)	5/20/1998 2:42:00 PM
From: JC	Respond to of 14451

It will not take 4 years for this company to be profitable. Think about things rationally for a moment. The restructuring charge taken last quarter should have an immediate effect on improving earnings. Perhaps not to the break-even point, but much closer. SGI is making all the right moves. It has basically hired away a lot of the top brass from HP (and they wouldn't leave if they didn't think SGI had a chance to make themselves a lot of money). It is divesting periphery divisions (Cosmo Software & MIPS) to focus on it's core competencies (namely high-end workstations and servers). And it is selling off some of it's manufacturing capacity to increase cash flow and to remove fixed costs from it's income sheet. Best of all, the new "Visual PCs" should be big hits. The SGI brand has a lot of equity with high-end users. There is no reason why SGI can't utterly crush a company like Intergraph (which has over a billion in revenues by the way). I have a feeling that the quarter ending June 31th is the "wrap-up" quarter which gets SGI's house in order (the divestures and restructuring should be complete). I would venture to guess that SGI posts at least a small profit no later than the quarter ending September 30th. Perhaps SGI stock will drift lower in the interim. Nobody likes to lose money, least of all me. But I feel confident that in 6-9 months my SGI shares will be worth significantly more than my $13 average purchase price. Good luck!