S.A. Advisory E-Mail Update
July 8, 1997
- Our next newsletter is due out within the next 10 days,first being mailed to paper subs--then internet on-line users.. As of this Morning July 8,1997 we will adding another position of Digital Equipment Corp. (DEC) at $35.625 to our master portfolio for % gain performance.. When one considers the world-wide franchise that DEC has, Book value of around $23., cash/share of $17.,only $750 million in ltd,lack of any real interest in owning the company, Compaq's interest a year or so ago @ around $60, earnings est for next, that is, $2.35, PSR-of around .33 and most brokerage firm have it rated a HOLD.. WE Love this stock.. We first recommended DEC a few years ago @$19.625 and took profits at $73.. We believe that in time we will see this price again. BUY NOW.
- Silicon Graphics (SGI). The company designs and supplies a family of workstations server and supercomputer systems incorporating interactive 3-D graphics, didital media and multi-processing super-computer technologies.. Trading close to 52-week low, everyone hates it, book value around $9.50, cash/share of around $1.67, only $400 million in ltd,est earnings for 1998 around $1.33 (no one really has a true handle on it-we look for surprises on the up side.. This company also has a world-class franchise which is not being valued fairly.Most brokerage firms have SGI rated a HOLD..We Rate SGI with a BUY and plan to monitor this in our Model Portfolio for percentage gain perform- ance.. Current price around $16.50----BUY
Yours truly, William Velmer
