Kerry,
Kipp is definitely a slick individual when it comes to street presentations and spin. His reply to my Microstamp question in December, refered to measuring their success by the flurry of press releases coming from the division (I smirked as he told me that and I don't think they appreciated it in the *breakout session* room).
However, they nailed the 64MB question cold by conserving their dough to fight the next generation battle. 128 MB is being skipped over in the high ante pocker game cited by Infrastructure's article last month, and MU is clearly in the thick of it.
While not huge, the ramp of production levels on 64MB is occuring, and since the margins are already squeezed on it, MU was right in not shooting their reinvestment load on a losing battle.
I'm sure alot of due diligence was done by the purchasers of the convertible. The story does look much better than it did, and MU has made some decent money when it looked hard for them to do so. I question if the convert price will be hit anytime soon, but 1999 (god that's forever in the stock market) could see them pushing for the old glory days!
I am obviously still bearish on the next 6-12 months for them, but I gotta' give credit where credit is due...
Cheers,
Peter Shaw |
