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Politics : Ask Michael Burke

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To: GuinnessGuy who wrote (23478)	10/12/1997 6:18:00 AM
From: valueminded	of 132070

Craig/ Others The best way (imo) to play the upcoming earnings announcement in txn is to buy puts on Micron. Txn should show a huge problem making money in the dram area and I think they will mention it. My take is they will play up the positive aspects of the dsp business and claim that the dram price deterioration is hurting their earnings. Additionally, I expect that they will be fortright about the future pricing of dram and indicate that a recovery may be several quarters away. While they may be able to ramble about the plusses of dsp's enough to mitigate a huge impact on their stock, I think the astute investors/analysts will pick up on the dram comments and realize that micron has experienced a tough pricing environment for the 1st two months of this quarter. (i.e. avg prices in the <$5 range as compared to $6.5 in their last report) Of course this is speculation on my part but I like the risk/reward scenario for the Oct 35 micron puts. Especially since they are practically giving them away ahead of what I see as a critical earnings report from txn. Just my thoughts

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