Jim, Yes, DRam needs are still growing, though slower than they have in any other of the past 5 years. But that is only a small part of the problem. The big problem is that there is a huge glut of dram capacity that swamps any possible demand. And, yields are going up, the new chips are more capable, and capacity is still being added.
So, I think MU will try to fool everyone into thinking the eps it reports in a couple of weeks are really good, instead of a disaster, but that folks will only fall for it in the very short term. And, when they note that future eps are likely to be much worse, the stock will head back to the teens on its way to single digits. The current price, while lower than the high, is still ridiculous. There is no chance MU will earn enough to be worth its current price, and losses are more likely than gangbuster eps. MB |
