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

To: sea_biscuit who wrote (6459)	8/26/1999 9:08:00 PM
From: Jim Davison	Read Replies (3) \| Respond to of 14451

Dipy, I was in London last week, and dropped by to visit the Victoria and Albert museum. Next to the exhibit on Frank Lloyd Wright they had a section on computer design, which had two SGI workstations running an exploded design demo of a vacuum cleaner on flat panel displays. I couldn't get near them because of the people lined up to play with them. SGI -- the museum computer! I read through an interesting summary of SGI's activities at siggraph: reality.sgi.com . . . which clarifies some questions I had. I think SGI's demise is greatly overrated. UNIX is getting a new wind with Linux, and the turnaround in SGI's graphics division is much more important than a few extra tens of millions in sales off the NT workstation. Also, I am satisfied that they are not canning the whole NT division -- just doing a prudent thing by putting the marketing of the machines in the hands of a more competent (but yet unannounced) partner. I predict the Visual Workstation will in future quarters continue to ramp up substantially. In fact, nothing bad has happened to SGI since the stock was selling at $19 two weeks ago. To the contrary -- some nice things have happened. Belluzzo's resignation is in my opinion due to his near failure to deliver profitable status to SGI over this 17 months or so of tenure. It's worthwhile to observe that Belluzzo had suffered personal strains with the breakup of his marriage during the SGI period, and he never seemed able to articulate vision for SGI. In fact, SGI's UNIX graphics profits have arisen phoenix-like from the ashes after he pronounced those revenues dead. Tidying up CRAY for sale is certainly a happy event. I think our new CEO Bishop may be exactly the kind of guy we want to focus and reawaken the SGI spirit of yesteryear, when blazing graphics were worth huge profit margins. I think we are also within a year or two of seeing a whole new industry in digital video on TV and the internet -- something SGI is perfectly slotted for. I know I have spent years writing glowing predictions of SGI's turnaround, but -- what the hell! It's worth $11 a share to me. I bet a buyout could push it to $22, but now I doubt Bishop would sell. (Stockholders might disagree!) Anyway, only a mutton-brain would listen to analysts. Go SGI! --JD