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Technology Stocks : Micron Only Forum

MU 236.66

+4.4%

2:32 PM EST

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To: Bipin Prasad who wrote ()	10/2/1999 3:46:00 PM
From: Glen2	Read Replies (3) of 53903

Three things affect MU's price: 1. Spot price of DRAM 2. MU earnings 3. PC Production Spot prices have quadrupled in only four months. They won't grow so dramatically over the next four months. OEM's now pay about half of the spot price. The MU stock price could overact to news later this quarter to a decline in the spot price. Earnings are on the rise. Peter Wolff of ING Barings said on Friday that he expects the price of MU to equal 20X its earnings over the next 12 months. Dan Niles of BancBoston Robertson Stephens is forecasting 0.17 loss in the qtr ended August, 0.62 earnings in the 1st fiscal qtr ending Nov., and $4.00 for FY2000, (ending 8/00). Joe Osha of Merrill Lynch also forecast $4.00 on Friday, 10/1. MU has declining manufacturing cost on increasing volume. Personal Computers are the largest consumer of DRAM. Every fourth calendar quarter, PC analysts commence a battle of predictions regarding the growth or lack of growth for that sector. In recent years, the fourth quarter is the strongest quarter for the PC sector. Strong PC demand drives demand for DRAM. During the next 90 days, bearish PC analysts can create buying opportunities for MU investors/speculators. Good trading,

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