Nasdaq:SGI - Earnings 8/11

kmiklas

kmiklas

I'm trying to decide if I should hold this through the earnings call.
http://investors.sgi.com/sec.cfm

Based on the fundamental analysis below, I'm planning on holding. Thoughts?

Thanks,
Keith

http://www.sgi.com/
http://www.bloomberg.com/quote/SGI:US

1. Good product: High-Performance Computing. Right in the center of demand for data-intensive industries.
2. Technology sector. Tech is in, and where the bigger money is being made.
3. High-performance computing applications are numerous: Financial low-latency, big data, climate simulation.. even bitcoin mining :)
4. SGI Federal provides services to the U.S. Government. I speculate (pun intended) that they're doing some battlefield simulations.
5. They use Intel chips, and have set world records:
http://www.sgi.com/company_info/newsroom/press_releases/2014/september/intel.html
6. Performance is, well, performance. Speed is it!
7. Recent partnership with Cisco.
http://blog.sgi.com/cisco/

BALANCE SHEET:
http://investors.sgi.com/secfiling.cfm?filingID=1316625-16-29
8. 11% gain in revenue vs. this time last year
9. Operating expenses dropped by 15%
10. Sales and Marketing expenses dropped by 17%
 
Interesting stock.

Did you do this: Check their website and see who, what, and how many people they are hiring. I always like to do that on companies like this.

I'd say keep the bitch over earnings... at first glance at least. Am I reading that right, they have $2.65 per share cash on hand? Gotta like that on a $6 stock.

No short interest to speak of...

89% institutional ownership...

If you have a feel for exactly what they do, and they are good at it... it looks pretty good. Downside risk looks pretty limited. But again, I hope you have a good handle on their business model. There are a billion tech companies out there.

Maybe someone here who understands tech better than I can chime in... I know enough about tech to know I don't know much about tech. :sneaky:
 
Thanks, vansandt!

I know tech best, but from a computer science perspective, as opposed to an investing. It helps, but I'm still learning how to leverage my CS knowledge to properly assess a company.
 
8 of the top 100 publicly known super computers are made by SGI (and 22 of the top 500). I'm honestly surprised this company is still around considering they abandoned their proprietary CPUs and OS. Don't get me wrong, I would have liked to see their architectures continue. I've not paid attention to HPC for a few years, good to see them still putting up good numbers. I can't really comment on what I'd do regarding hold/sell/buy/short. Just wanted to throw those numbers out.
 
vanzandt said:
I was wondering about that.... wasn't Silicon Graphics a tech boom darling way back when? It seems to ring a bell.
More...

The computers in the movie Jurassic Park were SGI.

SGI had their own OS called IRIX and they were even had their own CPUs. When it comes to HPC computing, the latency, bandwidth, and routing between compute (CPU) nodes in super computers that involved thousands (or tens of thousands) of compute nodes is incredibly important. For years, SGI had an advantage because of their interconnect. Even today I see there's a few super computers not manufactured by SGI that use the SGI interconnect.

Like I said, I've largely not paid attention to this area for a few years, just some food for thought. That said, I've noticed in recent years there's a lot more names in the top super computing spots. SGI still up there though.
 
Well, SGI just upspiked. Earnings tonight, and I'm going balls to the wall on this one.

We'll see if my first-ever fundamental analysis was correct.
 
Please forgive this n00b question.

I don't understand why this would upspike before earnings. Aren't companies supposed to upspike after positive earnings, and/or positive guidance?
 
vanzandt said:
6.13! Nice move... hey they go up before earnings too... thats good volume on that spike.... lookin good bro.
More...
Thanks Vanzandt! Hopefully things go well tonight.

Damn, fundamental analysis hits hard, eh?
 
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