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Technology Stocks : Number Nine Visual Technology -- Ignore unavailable to you. Want to Upgrade?

To: JR2 who wrote (988)	5/12/1998 6:56:00 AM
From: Wil Faller	Read Replies (1) \| Respond to of 1183

Normally, Chapter 11 would seem likely if they can't earn any money and they can't pay their debts. Why did SGI bother is a more interesting question? This is my guess. SGI has stated that they will start making PC graphics computers towards the end of this year. Maybe they think this is a very cheap way to get PC graphics technology. If NINE defaults on their loan to SGI, as payment SGI I suppose could take over their products and company. This would amount to a buyout of roughly $1 per share (the amount of the loan, relative to the available shares). This would be a good deal for SGI, not so good for NINE shareholders. Certainly, if SGI agreed to buy out NINE today they would have to pay more than $1 per share. This is just speculation, but one does wonder what is in this for SGI.