DavidG, what is your background? You have some experience in semi's right? re your notes, Jerry Denkera(sp?) has a lot of knowledge of the specifics, but...
1. Maybe- its what they said at the conference call, but I think there was some question as to just how solid those numbers were.
2. I thought it was about 50/50; regardless it would seem that unless there was a significant difference between contract and spot chips there wouldn't be much difference in price, something MU has backed up in conference calls. Its my understanding that MU's chips have slight quality advantages, but is that enough?
3. Oh, you just mentioned my last point. How much of a premium does it get, I wonder?
4.,5. Sounds valid, but 20% isn't a lot of money; in terms of MUEI, they produce very high quality computers but its my understanding that they don't produce anywhere near are efficiently as a cpq or dell. Last quarter, it was my understanding that MUEI was break-even. HOWEVER, they bought out Netframe somewhere around July, and a lot of cpq's and dell's profits of late have stemmed from servers. Would be interesting to see just how much of an impact Netframe could have on MUEI(note Netframe made better servers than cpq but didn't have a distribution channel that made them a feasible company, and Micron bought them for a steal- basically for the amount Netframe spent on one year's research and development.This acquisition could be huge for MUEI, imo.)
You also mentioned Appleton's firing being related to his desire to fund further fabs by issuing stock. That was probably a factor in Joel Parkinson leaving/getting fired; with Appleton it seems like it was just a silly power play b/t him and Tyler Lowry/certain members of the board, and that he had the audacity to sell some stock. |
