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Technology Stocks : Micron Only Forum

MU 344.97

+5.5%

Jan 9 3:59 PM EST

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To: Patrick Hennessey who wrote (27078)	1/24/1998 10:22:00 AM
From: Ted The Technician	Read Replies (1) of 53903

TXN is more stable than MU. 85% of TXN's revenue is from semiconductors. Of this 85%, less than 20% is from DRAM sales. I believe they made a loss this last quarter from the DRAM side of the house. Of this 85%, about 40% is from DSP which is projected to grow at a 30% annual rate. The rest of its semiconductor business is from logic and controllers. MU is heavily concentrated in the memory market which increases investment risk. I don't believe that it is making any profit with DRAM prices so low. MU doesn't seem to have a plant in Asia to take advantage of lower production costs. The Asian companies will continue to have a labor cost advantage for at least a year. The Koreans already have 64-bit technology, so they can continue to price DRAMs very competitively for the next year. The big unknown is whether the Koreans will change their marketing strategy (i.e., focus on profitability rather than market share). I believe MU has become a more speculitive vehicle rather than an investment vehicle, and it's stock price is driven by fluctuating commodity DRAM prices. In summary, I see TXN being flat for the next year while MU will be volitile.

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