Ian, I think that Avo is shooting his mouth a little too hard. Even if MU goes to trial and fails, RMBS will have to license them, MU may not get a "sweet" deal, but the Sherman (and Clayton) acts do not get "invalidated", just because a company was trying to adjudicate an IP issue. If MU fails in the law suit, a settlement will be reached. Maybe after a lot of delays and damage are inflicted on MU, but a settlement will be reached. As for MU's price, I think it could bounce quite hard here (maybe even as high as the $45/$48 area).
After that, I tend to agree with Iceshark, MU could drop to under $20 by next February, even lower if a failure in its litigations with RMBS causes major dislocations in its DRAM manufacturing. I am not sure if it will go as low as $10, simply because MU has not traded at less than twice book value since I know not when. The recent conversion of all those gifts from INTC and TXN were at very high premiums to book, and as a result, book is now higher than $10, and should grow a little more, since they are bringing some solid earnings to the bottom line.
Zeev |
