SGI Warns That Bankruptcy Might Be Year-End Option

tbcpp writes "OS News reports: "SGI issued its most ominous regulatory filing to date, warning that a bad 2006 could force the former high-flyer into bankruptcy. In order to improve its business, SGI will consider measures ranging from axing or selling off product lines to pursuing 'a strategic partner or acquirer.' The hardware maker will basically look at anything and everything to remain a going concern.""

Comments

What do SGI, Atheros, and Rambus share in common?

[Anonymous Coward]

The following may seem like blasphemy to the true believers in elitism, but ponder what I am saying before flying into a rage.

What do the following companies have in common?

1. Silicon Graphics Inc. (and MIPS) Silicon Graphics Inc. (SGI) purchased MIPS in the 1990s and offered to overpay for the price of MIPS because the founders of SGI were good friends with the founders of MIPS. The shareholders be damned. Later, under intense shareholder pressure (including concerns about possible future class-action lawsuits), SGI re-negotiated the purchase price. Eventually, SGI could not digest MIPS and spun it off as an independent company, MIPS Technology, Inc. The shareholders were burned.
2. Atheros When Atheros went public, it was a money-losing company. One of MIPS' founders was instrumental in helping to start Atheros. Atheros hired several "in-the-clique people [1]" personally known and well liked by the founders of the company. The shareholders again were burned.
3. Rambus When Rambus went public, it was profitable. However, unbeknownst to shareholders, Rambus planned to earn money by suing its way to "success". The stock has been on a wild up-and-down ride. Again, the shareholders were screwed.

What do SGI (& MIPS), Atheros, and Rambus have in common? All 3 were founded substantially (or partially) by professors from Stanford University. Is there a pattern here? Everyone affiliated with Stanford University seems to have become rich (from stock options) at the expense of the common shareholder.

[1] The "in-the-clique people" were, naturally, from Stanford University.

Bad moderation strikes again...

[nonlnear]

Clearly you were modded down by a know nothing moron who doesn't have a clue about investments. It was painful to read your simple, honest, corect point - only to look up and see that somebody had the bad sense to mod you down.

For the record, the parent is right. Anyone who makes investment decisions based on the dollar price of stocks should be asking for a refund on their lobotomy, as there was obviously too much removed.