Did anyone review last quarters statement for MU, here are few things they eluded to or mention:
The company may sell its "intellegence systems" or other side businesses to generate income.
The company has listed all current conditions as negative factors in its last forward looking statement.
MU will be unable to provide hopes of recovery for the near future (next TWO quarters)
I ran some numbers taking in consideration price drop, higher demand for memory for new computers, increased operating costs due to higher volume, etc. The loss appears to be between 26 at best and 31. If you take in consideration the rate of margin drops (by comparing the last two quarters reports)and calculate at the same rate, the loss should be near 38 cents. I am not an accountant, just trying to rationalize.
Anyone going long with MU must be out of his/her gord. One word of caution to the bears, MU will not drop significantly when they announce higher than anticipated loss, reason is the shorts are many.
By the way, any indications of the reaction to CPQ warning on Monday (for MU), I shorted MU full force Friday at 34.75.
(In memory of MU and its bulls, bears thrive)
Best luck Monday |
