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

To: Mang Cheng who wrote (3405)	11/1/1997 5:52:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 14451

McCracken must go --!!!!> I went through this with AT&T. At T, Robert Allen, surely the worst CEO at a major corporation in the 1990's, made it appear that he would step aside for John Walter, an excellent manager by all insider accounts -- except for Allen's pals on the board. Allen then went to work to undermine Walter, and eventually the board (incredibly) sacked Walter, instead of Allen. But by then, new blood had joined the board -- at the insistence of major shareholders. Thenceforth, Allen's days were numbered. Finally, Michael Armstrong was picked, and the stock has since taken off -- while the rest of the Dow has languished. No top flight candidate for CEO is going to repeat Walter's mistake. As long as there is a possibility that McC remains Chairman, any new CEO would fear being undermined when trying to change course from McC's vision thing, which sadly has gone awry. (Allen never had any to begin with.) Once I'm sure McC is out the door, I would grab shares with both paws, even at 25. But, until I'm sure McC is really out the door, I wouldn't go near it at 10. porc --''''>

To: Mang Cheng who wrote (3405)	11/2/1997 3:30:00 AM
From: Paul Jamerson	Respond to of 14451

The first thing SGI must do is assure the employees that there is roadmap for the future. It must then show that SGI does have a vision of the how to get there. It must make the layoffs quickly. If SGI doesn't do this quickly, employee attrition will occur. In fact it's happening now. The problems is that best the brightest will be the first to go. Employees outside the valley will probably stay for a while, especially remote sites like Cray. How well SGI executes will determine the future of the company. This senario reminds me of the case studies of Unisys, Sperry, CDC etc. These were all first rate companies which eventually turned into second rate resellers.