To All and Bill, Great Rap last night. Fleck uncovered the scam on DRAM prices. MU's inventory, which the company admitted was way too high at 60 milion pieces at the end of the June quarter, now stands at 80 million pieces. The reason DRAM prices are going up is that the chippies are not selling anywhere close to what they are producing. All the talk about seasonal demand and low inventories at producers, though they have a smidgeon of truth to them, have no bearing whatsoever on the price of the chip.
Problem: some day you have to sell the inventory or write it off. Second problem, you spend hard cash making the crap. Yes, it doesn't detract from eps until the junk is sold, but it sure draws down the cash horde. So, this quarter, the balance sheet will again be the feature at Micron. Look at the inventory numbers. Look at the cash. Look at the debt.
Good rap, Bill. Hope you have a great time in Europe. Don't take any wooden Euros, except in Holland, where even the shoes are wooden. <g> |
