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Technology Stocks : Micron Only Forum

MU 244.47

+3.1%

10:35 AM EST

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To: DavidG who wrote (29154)	3/2/1998 12:01:00 AM
From: mike iles	Read Replies (4) of 53903

DavidG bear: MU is not, repeat , not profitable at current prices. Unit cost of $3.00 approx. is wrong. Unit cost is a function of 2 variables. Last quarter, costs (excluding MUEI) were $415M and unit production was 90M of 16 Mbit-equivalent parts. Unit cost was approx. $4.60 ... ASP was $4.88 ... they eked out a small profit. Costs will be what this quarter, say $420M (contrary to popular opinion MU's costs go up, they make more chips, buy more equipment (not so much lately), hire more people ... e.g. 450 from MUEI) and unit volume will be up too. Say 15% which I expect to be generous. Gives you unit costs this quarter of $4.05 approx. This is not $3.00 or even close to it. bull: the ol' stock market just don't care [one day it may]. regards, Mike

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