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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: James Tarifa who wrote (2984)	10/9/1997 1:49:00 AM
From: Paul Jamerson	of 14451

Here are my predictions for what will happen in the near term. McCracken will resign soon. The board will find another CEO. Once the new CEO arrives he will begin cutting divisions which are not generating revenue. MTI will be the first to be cut. SGI will be using Merced in the future. Using Merced in both NT and Unix boxes. I have said it before, but I really convince MTI is gone. This will be the beginning of returning to profitability. In the long term, SGI still needs to improve the manufacturing, quality of it's computers. The future is still question, the low end is moving up and SGI will now have to learn how to design, manufacture high volume, low cost systems ( similar to compaq).

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