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

To: Mathon Dabasir who wrote (3577)	11/17/1997 3:03:00 PM
From: Brett Behm	Read Replies (1) \| Respond to of 14451

<Obviously you see something or you wouldn't be buying SGI today.> Here is the delima one faces when buying this stock or any like it. If you wait for SGI to fundementally come back (like I thought I waited after the 4Q), you end up buying at a much higher price. I was watching it the last time it visited the 12 range and ended up buying at 24 1/2. Unfortunately, SGI is not going to hover around 13, get it's act together, allow us to load up, and then zoom to 25 or 30. By the time we outside the inner loop average investor know things are fundementally changing it will already be a double. So what you have to do if you want the biggest move, is to gamble a bit and load up early. Technicals alone (which are firming up a bit in the last 2 days) could push this stock up past 17 on no news at all. <I respect your patience and I'm very interested in hearing why you're long SGI.> We are long because we think 14 bucks a share is pretty good price for a big revenue advanced technology computer company. It's tough to find one selling at more of a discount.

To: Mathon Dabasir who wrote (3577)	11/17/1997 4:54:00 PM
From: JC	Read Replies (2) \| Respond to of 14451

OK, I'll give you a few reasons which come to the forefront of my mind at the moment. * Sun, SGI's chief competition (at least for the time being) is putting themselves in a corner alone by pursuing their anti-NT stance. * SGI's NT machines are going to rock. I bet that margins will only be slightly lower than their O2 line, and volume will be way up. * SGI's high-end machines can't be touched by WinTel for a very long time. Not even the fabled NT 5/Merced duo will be able to effect them very much above the O2 product line, which will probably be phased out with NT 5/Merced machines anyhow. * SGI has a strong balance sheet, losses are relatively small, a sound restructuring that is neither too draconian nor too light has been initiated, and a new CEO is on the way. * SGI has a great brand which is legendary and will help carry them when they enter the PC space, as PC sales are consolidating to brand names. * Most people are pretty negative on SGI, so my contrarian gut says to buy. I may think of more thing later, but this is what comes to my mind in about 10 minutes.