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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 93.75

-0.6%

Dec 12 9:30 AM EST

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To: Carl Hutchinson who wrote (2926)	10/7/1997 6:48:00 AM
From: Jeff Maresh	of 14451

Carl - In the server market, keep your eye on the ball. Fast CPU's isn't the answer - it's high scalability - something only SGI has right now and the competitors won't have for at least two years - maybe longer. I've watched several good-sized companies in the past year continue buy tried and true DEC, HP, and Sun thinking the hardware would last 2 years. They buy a lot more 6 months later because the application grew much faster than they anticipated (the latest offering from DEC, HP, or Sun!) and the manager in charge promptly gets booted out the door. For fast growing apps (ie. database and internet), SGI is the best solution at this point. Marketing just has to get the word out. >I would also expect this to be dead money for a while. Like others >have mentioned, my experience leads me to believe that it will take some time for the >stock to catch fire again (maybe never). Why buy now? 'Cause they don't tell you the >day before they light the rocket. Regards Jeff

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