Ask Michael Burke 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.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Earlie who wrote (81183)	5/25/2000 10:49:00 PM
From: cardcounter	Read Replies (1) of 132070

MICRON TECHNOLOGY - STRONG BUY (Thomas Weisel Partners 5-25) DRAM INVENTORIES DROP TO 2 WEEKS; LIKELY TO SQUEEZE PRICING AND FORCE ALLOCATIONS DRAM industry inventories have dropped to 2-3 weeks from 5-6 last quarter. There are no signs of DRAM double ordering or inventory building that we have found. We believe PC OEMs may be put on allocation as inventories tighten further. We hear supplies are tight already for OEMs, particularly for Flash. Pricing is likely to increase steadily as supply is overwhelmed by demand. We believe demand will grow over 100% this year while supply will expand only 60%-70%. PC demand is strong according to our sources. Corporate buying has begun to pick up, adding to the already strong consumer demand. Industry-wide DRAM capacity is being squeezed more than we originally anticipated. This will likely further increase the value of MU's additional capacity. We reiterate that our fundamental thesis -DRAM shortage in 2H00 is intact and continue to point to MU as the best positioned manufacturer to benefit from pricing increases from a significant DRAM shortage. *We retain STRONG BUY. DRAM demand is poised to accelerate through 2H00.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next