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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 89.27

+1.6%

Nov 25 3:59 PM EST

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To: Mathon Dabasir who wrote (4780)	4/27/1998 4:17:00 PM
From: Eli Lauris	Read Replies (1) of 14451

MD, Belluzzo's strategy is to focus SGI on areas where it already dominates and a couple other growth areas such as web serving, data mining and media serving. This is the strategy where you don't try to go up a fortified hill, but go up only unoccupied or poorly defended hills and fortify the hills you already own. Hollywood digital effects is a hill SGI owns to a large extent which as I gather it intends to keep and fortify further with low-end NT boxes. That said, I don't think SGI can control the quality of movies made with its tools. SGI hardware & software is used on practically ALL movies that have special effects, so you get the mandarins as well as lemons. If you're unhappy with SGI's Hollywood connection, you better consider relocating your camp to another place.

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