Stars of Supercomputing and Cluster Systems: SGI, IGT, CRAY, TDC

Here are four Small Cap companies Selling Diversified Computer Systems:

Take a look at Silicon Graphics International Corporation (NASDAQ:SGI) which was trading in the $8 range in November and is currently trading in the $17.56 range, a gain of 119% in less than six months on a very strong run up. Silicon Graphics International Corporation topped $21 earlier this month. SGI sells a line of mid-range and high-end computing servers, data storage, and visualization systems, as well as differentiating software. The company's specific system applications include simulating global climate changes, accelerating engineering of new automotive designs, supporting homeland security initiatives, real-time fraud detection, and gaining business intelligence through data-mining. Its Eco-Logical data center products include ICE Cube, a modular data center that augments or replaces traditional brick-and-mortar facilities; CloudRack C2 for breakthrough density and configurability for cluster computing; and MobiRack for mobile, all-in-one data center capabilities for field deployments.

And take a look at International Game Technology (NYSE:IGT) which was trading in the $15.50 range at the beginning of November and is currently trading in the $15.29 range; essentially a wash in a little less than six months. International Game Technology hit $19 in mid January on a surge and subsequent fall. IGT pays a 1.51% dividend. The Company makes and sells electronic gaming equipment casino-style and slot machines that determine the game play outcome at the machine; wide area progressive jackpot systems with linked machines across various casinos; central determination system machines connected to a central server that determines the game outcome, encompassing video lottery terminals used primarily in government-sponsored applications and electronic or video bingo machines.

Then there’s Cray Inc (NASDAQ:CRAY) which was trading in the $5.50 range at the beginning of Vovember and is currently trading in the $6.45 range, a gain of 17% in six months on a choppy run up and fall; CRAY topped $8.25 in mid February. Cray Inc makes and sells supercomputers and provides its products and services to government agencies, academic institutions, and commercial entities in the United States, Canada, Europe, Japan, and the Asia-Pacific.

Finally take a look at Teradata Corporation (NYSE:TDC) which was trading in the $40 range in November and is currently trading in the $50.96 range, a gain of 27% in a little less than six months on a strong, classic, textbook run up. Teradata Corporation primarily serves customers in banking/financial services, entertainment, government, insurance and healthcare, manufacturing, retail, telecommunications, transportation, and travel industries with data warehousing solutions, including enterprise analytic technologies.

I don’t think the run ups at SGI and TDC are topped out yet and they will continue in the near term. I like the current entry level price of CRAY. Given enough support I think IGT can climb its way back towards $19 in the near term.