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

To: Vinod who wrote (3537)	11/13/1997 4:43:00 PM
From: dd	Read Replies (1) \| Respond to of 14451

Vinod- Let me say first thing, that my tech knowledge is limited to the on-off switch on my computer. I believe if SGI has the products that some people claim they do, then the trouble lies with good ole Ed - he has not been "tending to the store" the last couple of years and costs have gotten out of hand as well as there seems to be a need for much improvement in sales force. With good leadership the company will likely turn around. If the problem is something deeper then we could well be in deep doo doo and turn into another NOVL. I sure hope not as I have put the kitchen sink in this baby trying to get my cost basis down. Oh well, as my simple minded cousin used to say, "Easy come, easy go". Does anyone have any news on how the search for a new CEO is progressing? Happy Hunting dd

To: Vinod who wrote (3537)	11/13/1997 5:38:00 PM
From: Jojo Mosko	Respond to of 14451

Vinod, Are you sure you haven't got it backwards? What I think the company has not shown any positive earning for last so many quarters except the 1997 Q4. SGI had positive operational income (earnings not counting the Cray aquisition charges) since 1984 (13 years) except in the last quarter (Q1 FY98).

To: Vinod who wrote (3537)	11/13/1997 7:31:00 PM
From: Paul Haynes	Respond to of 14451

Vinod, I agree that you make a good point regarding the reduction in backlog. If no one is buying (or if Company is not selling), then the earnings stream cannot be supported except through cost reductions which we are now seeing at SGI. In the long run, the earnings cannot be supported through just cost reductions. I fear that SGI will be losing some very good people that have and will take some value from the firm instead of just the cost of their employment. The current trend in the stock price is reflecting this in my mind. Regarding the technical indicators, I get those from alphachart.com The indicators are misleading right now. Fundamentals and the overall market are driving the stock down. Price and volume (technical aspects) may be causing some of the selling but probably not much. Shorts may be having an effect. I need to check the short interest. Have a good night, Paul Haynes