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Technology Stocks : Micron Only Forum

MU 292.63

-0.6%

3:59 PM EST

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To: Trey McAtee who wrote (23266)	10/30/1997 6:18:00 AM
From: Skeeter Bug	Read Replies (2) of 53903

>>MU has been a godd buy. it never should have gone above 38, but it was a good buy at 16.<< trey, mu earned $1.03 last year. $16 is a 16 pe for a commodity company in the midst of a glut. although $16 was a much better buy than anything higher, in my mind it wasn't a good buy. here's why. take away yhe korean dram scam and mu makes $0.40 at best it takes a 40 pe to be a good buy at $16 - again, in the midst of a glut. i think 15-20 pes are more reasonable for a commodity company. add in the glut factor and some of the multiple needs a haircut. mu is currently losing money and there are many questions yet to be answered, not the least of which is where's the money to upgrade going to come from? i think mu would be a decent buy at $10 b/c this market can change and you never know when the koreans will hold back inventory. if they do for another q then mu will go to $60 again ;-) btw, maybe toshiba buys mu cheap, holds back inventory and then sells high to cover their dram losses ;-) >>i would bet against an infinite downturn<G>.<< me too. but that is the wrong bet to make. the first bet to make is whether mu will participate in the next upturn. if that is affirmative then the appropriate bet to make is mu at $16 the bottom or will it fall further. i do believe there will be a psychological support at $16 or so. we are entering gloomy times and there is no holdback or tout-a-thon to support you. yet. i wouldn't buy until tk starts the pimp-a-thon one more time and ups his 99 estimate to $6 a share. ;-)

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