Skeeter, I think you are committing a grave mistake in equating RMBS to MU, these are very different animals. MU needs to dish out gobbles of money just to stay afloat, their profitability is a strong function of pricing in a commodity environment, but they need to renovate their fabs over and over again, it is a cash sink hole. RMBS is positive cash flow even if the technology does not capture 10% of the PC market, it is a cash printing machine. You may agree or disagree if RMBS is the future of the DRAM market, but one thing is clear, INTC needs RMBS to succeed more than RMBS needs it. And just as the "scenario" in MU seems to come to fruition, so will the wishes of INTC prevail, whether or not some think that it should not. It is just a question of rate of penetration, not if it will penetrate. The stock is holding very nicely for just one reason, every time it gets under $90, hordes of shorts are covering. If it breaks $88, then we may have another short term story (decline) developing, but you got to see those sub $88 prints before you can stay bearish on RMBS.
Zeev |
