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Technology Stocks : Micron Only Forum

MU 241.14

-6.7%

Dec 12 9:30 AM EST

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To: Thomas G. Busillo who wrote (46528)	6/22/1999 11:33:00 PM
From: Carl R.	of 53903

I do think it would be good if some analysts can probe the JV relationships a bit. You and I read the same clause and come to different conclusions regarding the pricing. I expect that in falling prices the JV deal will be helpful, and you conclude it will be very painful. The difference is that I believe pricing is determined as a discount from selling cost and floats with selling cost through the quarter, while you believe that the price is fixed at the beginning of the quarter and remains constant through the quarter. As for KMT breaking even, there is another bit of information in that fact you are missing. Yes it could indicate high transfer pricing, which would be bad for MU. But if my understanding of the pricing is correct it would indicate low costs. Presumably MU's costs in Boise are at least as low as the costs at KMT, and that would bode well for MU. Certainly if we take the stock price as an indication, it would indicate that MU is making excellent progress on costs. Incidentally I took advantage of today's action to cover my short for a point loss. I don't recall ever seeing MU's price fall after earnings. Carl

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