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Technology Stocks : Silicon Graphics
SGI 89.29-1.1%Dec 31 3:59 PM EST

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To: Fred W. Fletcher who wrote (145)2/26/1996 11:10:00 PM
From: Joseph J. Balardeta   of 199
 
SGI will bounce back!
At first I didn't like the deal, but Cray affords SGI certain
opportunities in the supercomputer market. As you have noticed,
Cray is not in as bad of shape as many would suspect. I am a
computer engineer and am very familiar with SGI's (and their
subsidiary MIPS) designs. The threat mounted from below by Intel
based machines is not likely to hamper them in the very near
future. Their machines are extremely well liked by anyone that
has used them and they have a history of getting advanced designs
to market faster than just about anyone else. I believe that the
Intel based machines are going to get a challenge from below as
well (see Oracle's new Internet box announced today).

As far as Wall Steet's opinion of the acquisition, you would have
to be crazy to think that the reaction would be positive at first.
SGI is thought of as a cutting edge company and Cray is viewed as
a relic of the past. I can only hope that the stock does dip quite
a bit so that myself and others can acquire a larger share. As has
been mentioned on SI before, MIPS should sell more than double the
number of processors as compared to last year. In addition, many
of SGI's Web products are being received quite well.

If you're looking for a short-term fix, keep looking. But, in the
end, I am of the opinion you won't be dissappointed with SGI's
performance.

-JJB
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