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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 90.81

-2.0%

3:59 PM EST

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To: Bill Holtzman who wrote (1452)	5/16/1997 12:43:00 AM
From: John M. Zulauf	of 14451

> Why buy new companies - why not just buy back his own company? SGI already has more on it's plate than it can digest. Taking the excellent WPD (web products division) with SGI experience and multi platform experience and combining that with a successful working team with expertise on the target platforms is a very cost effective way to grow the company without having to worry about "the bozo effect." (If you have more job openings than there are qualified people -- and just hire to fill the req. you can get buried in bozos.) Some argue that it was the bozo effect that nearly killed Apple. This group comprised the sort of team SGI was going to have to build anyway. Given that much of the team is in Moscow, Russia, CIS -- a very cost effective way indeed. I spoke with one of the business professors the US gov't hires to teach US accounting methods (really! our tax dollars at work) and he said that given that this is a going concern in Russia with HQ in the US, that the East-West joint venture risks have already been solved by Paragraph, with SGI just reaping the benefits. Speaking for himself and not his employer, John Z.

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