JG, what do you think about MUEI? Great PC's, lousy management. I've converted everyone in my office to Microns and my wife just bought one, too. No problems at all. I will probably buy one for myself this summer. How anyone could sell such good PC's in such quantity and lose lots of money is beyond me.
On the other hand, they have a new CEO and the price seems to have bottomed out at this point. Price/Sales is ridiculously low, though earnings are only forecast at .30 - .48 through August. FY1999 earnings range from .90 to over $1.
Could this be a turnaround play or a buyout target? It's looking interesting.
Story Stocks Wed 01/14, 1998 ****** 13:10 ET ******
MICRON ELECTRONICS (MUEI) 10 3/16 +1 1/8. It's been a long while since these shares have experienced a double-digit, one day gain. More common for the stock are dramatic moves lower. (See Chart). But thanks to Prudential Securities analyst Don Young, who upgraded the stock this morning from a "hold" to a "buy," MUEI shares have appreciated more than 12% for the session. According to Mr. Young, Micron shares are flat out cheap. He notes that the stock trades at only 18% of estimated forward revenues, at half the valuation of Apple Computer and 1/10 the valuation of Dell Computer. Also being viewed positively by investors and analysts is the appointment of Joel Kocher as the company's new president and chief operating officer. Mr. Kocher formerly held the same title at Macintosh-clone maker Power Computing Corp. From 1987 to 1994, he worked for Dell, serving most recently as the president of worldwide marketing, sales and service. With Mr. Kocher at the helm, the Prudential analyst expects Micron to earn $0.30 a share for 1998 (cut from $0.65 in anticipation of more restructuring) and $1.05 in 1999. His 12-month price target of $22 per share, suggests potential upside of 115%. |
