Some thoughts on MU from waikiki guy on the FOOL
DISCLAIMER: I own SOME BUStickets, and a few shares of the pirate gang.
The selling "into the rally" by MU shareholders is being called "profit taking" by MU loyalists. It looked more like "pump-and-dump" by the big guys, to me.
Most people think that MU will tank hard post an adverse legal decision. If so, why have we decided that a settlement will "save" MU? (In either event, MU pays-to-play.)
MU's bod is certain that the recent drop is "sector related." Of course, I am not of that opinion. But, I am suggesting that we should re-examine our fixed view that "settlement saves MU, and court loss kills MU."
It could be that MU prospers/dies on the merits of its fundamentals --- even after the BUS begins collecting its fares; whether via settlement or verdict.
The market has CLEARLY recognized that RMBS does NOT need MU. The market has not said "MU needs RMBS." Some of us have simply decided that --- based on the relative stock prices.
Even a week ago, I thought a settlement was in the best interest of MU. I still think - short term - a settlement would be REAL good for the MU stock price. But, that price may NOT really reflect the ability of MU to continue as a viable business; with or without RMBS' blessings.
I am starting to think - after studying the MU conference call - that MU has absolutely not one innovative bone in its corporate body; it follows, it uses, it pirates --- but, it is intellectually bereft.
Can that kind of business model survive FAR into the future, or are the IP models - and, the models of innovation - the ones that rule decades out?
Maybe MU knows that they are - and have been - on the wrong track for a VERY long time. Maybe MU sees that there is "no reason to settle," because it just does NOT matter in the BIG picture.
If so, ONLY the LAST judges will end the dispute.
Good Luck.
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My reply .....
Great post - and possibly you are right.
When the others have all signed, however, It will be in RMBS's favor to stall the trial and I believe they will.
If there is a European injunction against MU that will mean the end of it.
In the conerence call I believe MU stated moving towards SRAM and FLASH.
To that I say
1) I hope so
2) Goodbye
3) Worst of luck to you
Trying to compete against SSTI at this late a stage will do them in.
M |
