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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 93.81-0.5%Dec 12 3:59 PM EST

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To: Alexis Cousein who wrote (385)11/14/1996 9:05:00 AM
From: Don W Stone   of 14451
 
Alexis,or anyone else who cares to add some input:
I am a private investor in SGI, as of SGI's recent product announcements . The rave revues of the "02" really got my attention.
Plus my stepson, who is a software developer for a video editing firm, says " nothing going to touch it for quite awhile, SGI is going to dominate in alot of new markets with the 02".
Now I am trying to reduce that level of excitement that the "02" just may be generating to impact on SGI, revenue? earnings?etc. over the next couple of years.

I read somewhere about "unit volume" becoming the focus for SGI and I assumed that meant the workstation market. Is the "02" the machine that will accomplish that? Will it broaden your market? Is it the appliance you refer to in your statement: " MIPS designs hi-end processors, then migrates them to appliances in volume to make money"?

Is there the potential to migrate from the "02" to an even lower price point and a potentially even broader market sometime in the future?

If you can't tell, I am of the opinion that SGI has "bottomed out" and from here on out it is up. I also want to support anyone who deters the intimidating tactics of the WINTEL machine with its army of selfserving developers. I would like to think that SGI just could become that other choice. :-}
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