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To: miklosh who wrote (24391)	11/12/1998 12:51:00 AM
From: joe	Read Replies (1) \| Respond to of 45548

OT miklosh, My first thought is you better make your highest priority protecting your profits, which might mean curbing some of the upside, unless you're 95% certain the company is going up in the next 6 months. I don't know the company that well, except that my location uses about 80% or more SGI machines. They've been on a death slope for a while. IMO, these machines are on death row. The only reason they're here is because of the "mainframe" affect, lots of people would have to be readjusted to a new computing environment. But, if a decent competitor came out with cheaper machines that could port all our code then to 64 bit machines, then it's going to happen sooner or later. The gov't is paying 5 times more for hardware than they should. Even the gov't is getting smart enough to cut those kinds of costs down...they're being slowly forced to do so. SGI as a supercomputer company? That's only going to work in a BOOMING ECONOMY. IMO, there just isn't that much demand for computing speed (of course, there will always be some places that need this). But what everybody needs at the moment is bandwidth. For the moment, computing speed is increasing fast enough for us. We need other parts of hi-tech to catch up for a while. Name me 3 of your best reasons why you think they'll do better in the next few quarters. I think that will help. I'd be interested to see what you think. Why are they doing better now? Anybody interested in buying them out? Any partnerships or alliances established? If it was up today, there has to be a relation with INTC. OK, they'll use INTC chips for new desktops. Assuming desktop prices will go down, why are they going to beat DELL at their own game? I'd be curious to see what the TA gurus think about SGI's chart. joe

To: miklosh who wrote (24391)	11/12/1998 9:05:00 AM
From: chenys	Respond to of 45548

miklosh: I believe it is a wise move to take chips off the table now. You can always re-enter as the atmosphere gets more favorable. I believe that machines like IBM's and SGI's mainframes, or for that matter, the SUNW's workstations running in non-Windows environments are always needed. It is the processing power and the reliability in their operating systems. To begin with, no serious business can tolerate the all too buggy Windows OS, it is one of the worst OS people have ever seen. Not only is the OS, but also are the applications like Office. The DOJ is serving us customers and eventually the whole society by prosecuting MSFT. It should be split into three individual companies of OS, Applications, and Internet. But in any case, the internet is now believed to be limited by bandwidth, the traffic can certainly be alleviated if each node has, for example, increased graphic processing power. I suppose computing power is not just on the chip, it also needs to be done on system architecture level. Even companies such as CPQ, which might strike you as an assembly company of the like of DELL, has departments doing research on massively parallel processing. The lucrative profits in PC Windows areas are so compelling that no one has time to worry about such real technology, but we must remember, the software engineering is still in its infancy and no one can tell for sure what is going to happen in the next ten to twenty years. I am sure, though, that when we look hack at that time, we will regret how much time we had wasted in re-booting, re-foramtting our hard disk, re-installing our Windows whatever, or even more, how much time you spent waiting for a page to come through, especially when you are sending out a trading request and your boss can show up any minute, but your sell order page just sit there waiting to be discovered! Or who knows, there might be so many internet addicts losing their marriage due to those immature technology just because "such that they can't go to bed in time most of the nights!" In any case, nowadays, futurists are not in fashion these days, we will just have to see.