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Technology Stocks : Micron Only Forum

MU 241.08

-6.7%

3:59 PM EST

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To: DJBEINO who wrote (28510)	2/17/1998 12:27:00 AM
From: Richard Russell	Read Replies (2) of 53903

Beino, WAKE UP Beino this is not a big surprise everyone knew that there would be a consolidation in this buisness and that some would exit. Some companys beleive that there is not enough profit in this business even in the future when supply and demand get back to equilbrium to make it worth their while to stay in it. Unlike many of these companies mu has no choice, THATS ALL THEY DO. Remember memory chip demand is expected to rise only 7% this year and that could be optimistic. If the memory business ever becomes more then marginally profitable in the future more capacity will be ramped up to get a piece of the action which will again cause prices to be depressed. Its a vicious cycle in which the first sign of profitabiltiy will trigger increased production which will cause the shrinking of those profits. Of those that are left no one will dominate and over the long haul profits will be slim. Now go dig up some more news that gives us the illusion that mu is worth $75. RR

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