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Technology Stocks : Micron Only Forum

MU 239.40

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3:59 PM EST

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To: Kathleen capps who wrote (25252)	12/15/1997 8:28:00 AM
From: mike iles	Read Replies (1) of 53903

Hi Kathleen, No, my numbers are operating income so they don't take interest expense/income or taxes into account. I'm fuzzy on the details of the converts but I remember they're allowed to miss payment several times without it putting them into default. I think they pay twice yearly so the January amount would be $17.5 million. Yes, I do think they will skip payment this time. This is based on my theory that they will acknowledge reality this quarter (Lehi, inventory, restructuring) and preserving cash will be part of that. I've criticized managemment and the board for not raising equity in the salad days and actually they sort of half-ass did with the convert issue. You're really buying equity when you buy that issue (i.e. you assume the risk of an equity holder) and if they get into serious financial trouble I expect that debt will be converted into equity, probably at something like $10/share, not the $67.44 sticker price. So I have to modify my criticism, they didn't raise enough equity and they didn't take advantage of the high prices that were there as recently as August. (potato Head's influence?) regards, Mike

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