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Technology Stocks : Micron Only Forum

MU 258.46

-2.0%

3:59 PM EST

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To: TREND1 who wrote (24466)	11/26/1997 8:49:00 AM
From: Thomas G. Busillo	of 53903

Larry, other than total amazement over a CompUSA giving away 16-Mb EDO chips as a lure...no problem. Also, amazed at the prices from AICE. $3.10 for EDO? Don't know what the average COGS is for the product, but you'd have to assume that some of the players have gotten to or are coming close to the point in the marginal cost curve where some players are continuing production solely to limit losses (total hypothesis on my part, but if the COGS was 4.50-5.50 6 months ago for the big Asian players, I'd find it hard to believe they've lowered their variable costs that much or get much of a boost by reallocating of fixed costs...and you're getting into "creative accounting" land there)...looks like a scramble to dump inventory before further price erosion...which pushes prices further down...SDRAM will replace EDO anyway, so it's not like anyone has any long-term strategic interest in making a go of EDO anyway...so some products are in the "death spiral". I don't know. Good trading, Tom

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