SGIC is a buy
April 6, 2009
Silicon Graphics, Inc.
SGIC is a buy @ 0.28
Enterprise data centre Server and storage specialist Rackable Systems has announced that it has signed an agreement with Silicon Graphics Incorporated to buy the company for around US$25 (AU$35) million in cash. [ link ]
Rackable says that by combining its expertise with SGIs, it will be in a position to provide customers with market leading hardware and software technology within large-scale x86 cluster computing, HPC, Internet, Cloud Computing, large-scale data storage environments and visualisation platforms across many verticals and geographies. This combination is also expected to result in a stronger global services organisation; reaching commercial, government and scientific sectors on a worldwide basis.
Offer: $25 Million / 11.65 Million shares = $2.14 / per share value. I do not believe it will reach $2, however a one dollar and slightly plus is achievable.
Random Posts
Posted in Daily Picks
content rss
April 6th, 2009 at 1:29 pm
In a filing with the U.S. Securities and Exchange Commission, Silicon Graphics said it expects to pay off secured creditors with net proceeds from the sale.
http://uk.reuters.com/article/rbssTechMediaTelecomNews/idUKBNG3907820090401
The buyout does not ensure equity holders will receive even a penny. Creditors have first dibs on any money SGIC recovers…
April 6th, 2009 at 6:55 pm
I pray the best for these two companies. I just looked at Silicon Graphics standings in the stock market, today, and they are doing pretty well, thus far.
April 6th, 2009 at 7:07 pm
@ Piotr, you are correct….however remember the general fundamentals of daytrading — Buy on speculation, sell on news.
@ Cash, indeed me and you both, Silicon has always been a great company and would hate it to see it go to ruins.