Micron Only Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum

MU 392.36

-1.8%

12:37 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DJBEINO who wrote (48088)	9/8/1999 5:05:00 PM
From: Thomas G. Busillo	Read Replies (1) of 53903

DJ, the Kipster never ceases to amaze: Micron Vice President Kipp Bedard told analysts and investors at a Salomon Smith Barney conference in New York that rising spot prices for dynamic random access memory won't help results in the quarter ended Sept. 2 because much of what was sold was older inventory that cost more to make. Sure, "older inventory" cost more to make. From last Q: FG = $238.6 M WIP = 146.4 M Are they using LIFO? One would think they inventory accounting method would be contained in an SEC filing, however, I couldn't find it in their most recent 10-Q or the 1998 10-K. However, if the question is "why won't rising spot prices make a dramatic difference?" isn't it more: A) They sell an overwhleming majority of product at contract prices B) Their contract prices have significantly trailed the spot all quarter All those reiterations we've seen over the last month - how many of them even mention that? And speaking of which... ...hey, someone wake Mona Eraiba up over at Gruntal. She missed today's analyst riot. She had a great quote about their inventory in a report just after last quarter earnings. Back when everyone was concerned that they had X weeks of inventory, she wrote something to the effect that this figure was inflated because the market price of the goods was now below their cost. Somehow this was supposed to be a positive <g> If he's trying to burst the expectations of people who think they'll return to profitability this Q because spot prices are rising - fine. I still think the consensus of -.17 is too low. Good trading, Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next