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Technology Stocks : Micron Only Forum

MU 234.19

-2.2%

Dec 3 3:59 PM EST

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To: Sridhar Srinivasan who wrote (24809)	12/6/1997 9:40:00 AM
From: mike iles	Read Replies (2) of 53903

Sridhar, If you're tired of reading that old bearish drivel on a daily basis, maybe you could enlighten us as to what a company losing money in a commodity business should trade at .... what's wrong with 1/2 of sales??? ... e.g. Western Digital. Do you know what 1/2 of sales puts the big MU??? If you disagree with the characterization of memory as a commodity business, could you tell us why? Does MU have 90% market share like INTC? 80% 70% ... does it even have a 10% market share? Let's see ... what's pricing like in this business (nuff said there) ... how about return on equity, the litmus test?? ... 16.7% for the last 10 years ... actually not bad ... unfortunately, the year-by-year numbers exhibit a bit of cyclicality and we just finished 3 fat years ('94-'96, with average ROE of 31.5%) and have had one lean year (8.4% last year ignoring extraordinary gains) ... looks like we might have another lean year. MU's currently trading at about 3X sales. Could you tell me in a non-drivelous way why it should trade at this valuation?? .... just one reason would be great. 'MU ........ tanks for the memory' regards, Mike

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