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

To: Ms. Baby Boomer who wrote (8171)	10/26/2000 5:06:02 PM
From: Ms. Baby Boomer	Respond to of 14451

2HRS2GO: Telecom consumers go unloved ... SGI (NYSE: SGI). "You're on crack" someone told me after reading a 2HRS column a couple of weeks ago that suggested the workstation vendor might have better days ahead. But after talking to Hal Covert this morning, I see no reason to change my mind. It's not that Covert, who took the CFO position at SGI not long after he joined Red Hat (Nasdaq: RHAT), said anything different from his statements at the last couple of analyst conference calls. But he's taking a practical approach that suits a long-battered company. To be sure, Covert will boast about the technical superiority of SGI's Origin line, but you have to expect that from all executives; it would be more worrisome if they didn't talk up their product line. At least Covert's fiscal targets -- 15 to 20 percent in the second half of fiscal 2001 -- are reasonably conservative. And he's not asking investors to dive blindly into the stock; he knows SGI has a lot to prove. "I have no problem with the 'Show Me' approach," Covert says. Incidentally, this should be a good test for the claims of Oracle (Nasdaq: ORCL). Part of SGI's turnaround plan calls for cutting $100 million in annual costs, a target Covert believes can be reached largely by standardizing the company's ERP systems on Oracle. People tend to take Larry Ellison's hype with a grain of salt, but if his software suite can revitalize an operation as badly beaten down as SGI, it would be an achievement worth noting. zdii.com