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Technology Stocks : Silicon Graphics
SGI 88.74-0.6%Jan 2 9:30 AM EST
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To: Al Perri who wrote (156)3/2/1996 2:50:00 PM
From: benwood   of 199
 
You're right, time will tell. At least SGI has a track record of
merging well. Note how fast they turned a downwardly spiraling
MIPS into a profit making subsidiary. That merger created a lot
of uncertainty and caused the stock price to drop (to 8, as I recall,
and I bought in at 9 1/2 a couple weeks before it bottomed out).

One thing worth considering with this merger is that one of their
main rivals, HP, just swallowed up a supercomputer company, and with
it (I presume) technology and patents that would have given it
an edge over SGI. Now SGI will hopefully gain some talent and
technology at the super high end and remain on top.
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