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Technology Stocks : Micron Only Forum

MU 255.17

+3.3%

11:14 AM EST

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To: Kerry Phineas who wrote (16052)	6/27/1997 8:42:00 PM
From: Ed Beers	of 53903

Kerry, I think that you are correct about the transition to 64 requiring bigtime money. I think that is where they are spending the $500M they just borrowed. If you look at their web page, they have a list of used equipment for sale. It shows them surplusing out lots of used steppers and other stuff. I wonder where that leaves Lehi. The remaining $500M they registered to sell probably won't be enough to equip it even if they can find a buyer. Between declining (dare I say plummeting) DRAM prices and their new debt servicing, I can't believe they will generate enough cash to equip it. The one thing in the bulls favor is that boys in the factory have consistantly delivered the goods. I am impressed and poorer as a result. In the long run, I see two problems for Micron. The Koreans took a hit in market share to raise prices once but I don't see them continuing to be so nice if Micron really shows any sign of gaining 20% of the market. Of course I didn't see it coming last time. DRAM is a prime candidate for 12" wafers. I keep reading that 12" wafers will yield a 20-30% reduction in cost so a 12" line will be a must have. It is not clear that Micron can afford to play.

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