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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Davison who wrote (6333)	7/30/1999 5:20:00 PM
From: Jeff Morgan	Respond to of 14451

Thanks for a good-sense post. Afficionados of comets and conodonts have a perspective too rare among current investors. It's a basic rule in economics: put the sunk costs behind you and look for the best future course. Where do we go from >here<?

To: Jim Davison who wrote (6333)	7/30/1999 5:55:00 PM
From: Bill Holtzman	Respond to of 14451

Jim old buddy, Jeff's right - that was an excellent, most objective piece. >>SGI has finally gotten serious about the real cash cow of this decade -- servers.<< I hope you're right. I haven't been on top of them enough to know this. >>The high-bandwidth SGI machines are prefect for video and other high-bandwidth applications that can't be touched by existing manufacturers.<< This is what we dreamed about before. High performance servers are obviously going to be in huge demand if they aren't already. When bandwidth explodes, so will this demand. sgi always wins awards for performance - so where's the beef? >>Finally, nobody seems impressed by the fact that SGI beat its numbers by a mile<< Fool me once, shame on you... >> -- and did it without revenues from the Flat Panel display (which seems to be a small fraction of revenue anyway) << Tom Watson are you out there? Tom gave me a tip on Applix software and he was right! >>and without substantial acceptance of their NT products which are still really in their infancy. They did this by trimming and streamlining their operations.<< A.k.a. giving unproductive employee dogs the pink slip? >>Pretend you are a new investor looking at the company for the first time.<< Jim it's so hard but you're right! It's like flying a plane on instruments - you have to ignore your balance sensations (that was the secret, JFK). >>Right now, the company doesn't look bad at all. They have new, hot technologies, still have a nice 700 million in cash, are well positioned with growth sectors of the industry, and just had a surprise profit. To me, this is no half-empty cup. I have been bruised with SGI many times, and may sell a bit more at $19, but as investor skepticism is overcome, I think we will see the potential for considerable upside on this stock that could rapidly develop an attractive PE.<< OK, let's lose some more on this (former) dog! Regards Bill