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

To: Naveen Kumar who wrote (5183)	9/30/1998 2:49:00 AM
From: Jim Davison	Read Replies (3) \| Respond to of 14451

Bill, I don't think there's much that is mysterious about SGI's stock price. They have been losing money -- chiefly because they've been locked into a dwindling share of the dwindling UNIX market. They are on the verge of opening new markets in the high-end NT range. They may fail at that too, but hell, I think it's still a stratagy that a reasonable person could view as potentially successful. On the downside, given 750 million in cash, the value of MIPS and fixed assets of the company, they're right at book value now. I think now would be a better time to buy than sell. But I must admit that it has been a rocky road for the last few years. --JD

To: Naveen Kumar who wrote (5183)	9/30/1998 1:34:00 PM
From: brushwud	Respond to of 14451

Haven't seen the annual report, but the proxy statement and 10-K are online: sec.gov sec.gov The rank and file had their options repriced to $11-1/8 on July 31 (after being repriced last year). Also it looks like they've totally written off ParaGraph and most of the Cray tax-loss carry-forward has expired unused. They'll need $1 billion of profit to absorb all of their remaining deferred tax assets!

To: Naveen Kumar who wrote (5183)	10/1/1998 9:30:00 AM
From: Jeff Morgan	Respond to of 14451

Hear, hear. There is some justification for the outlandishly big pay packages given to execs whose companies have done exceedingly well, on the assumption that the exec's exceptional leadership is responsible for much of the success. How on god's green earth can anyone justify huge severance packages for people who clearly failed their positions? Why is it that shareholders have remained quiescent in the face of this outrage? The club at the top freely vote themselves fat rewards with hardly a squeak from the owners. It's a sign of SGI's sense of self-satisfaction that late management's departure was accompanied by many expressions of gratitude to the departing leader. New management has said it's found the problems were deeper than expected. Bill Holtzman echoes my frustrations, but, being trapped in this losing position, I hope and pray that RR can pull the chestnuts from the fire. Then we can pay him big.