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

To: Thomas A Watson who wrote (8349)	12/7/2000 9:24:01 PM
From: Maher Sid-Ahmed	Read Replies (2) \| Respond to of 14451

Very few companies who have been on a losing streak for so long are really able to turn around. Nissan was able to return to profitability because of outside help. INPR did the same because MSFT pumped in $120 million. However, the stories of failures outnumber the stories of success. SGI has ~$180 million in cash and a burn rate of over $100 million per quarter. If they do not show a return to profitability this quarter they will be in big trouble. I have reduced my position because of the way the shares have been reacting. In a slow economy SGI will not be able to liquidate assets or borrow any money. Their only chance is that MSFT or Intel or some other white knight invests in them and save them from a cash crunch that they may face. However, one can never know how the future will hold for SGI. The CEO has over 4 million shares that he could have exercised at $40, but he did not. A member of the board invested over $250,000 in SGI shares at $4.25 purchased in the open market. So obviously people in the know are confident of SGI's future. SGI is a great company with great products and a very competent COO/CFO. I really wish this company is not shredded any further by WS.