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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 91.87

+1.8%

Dec 5 9:30 AM EST

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To: BlueCrab who wrote (365)	11/6/1996 12:35:00 AM
From: Paul Jamerson	of 14451

I agree with you. SGI is very strong technically, but unfortunately that only matters in the high end. I've said many time there isn't enough growth in the high end. They missed the market window by not moving into the low end quickly. Now they are no longer part of the NT port. There are moderately price machines with average graphics performance which may begin to take away the low end business. Perhaps SGI should begin to look at jump on the Wintel bandwagon and begin to use Intel's PPro (P7 when available) processors in their lowend system and concentrate on value added graphics for these machines. The could scale back MTI and use MTI to design very high end (cost is less of an factor) processors. I believe they have some of the most talented engineers I've ever worked with. Unfortunately, this has not translated into growth beyond their present level.

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