Micron Only Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum

MU 236.48

+2.7%

Nov 28 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Kathleen capps who wrote (30927)	3/20/1998 10:48:00 PM
From: Ted The Technician	Read Replies (2) of 53903

Comments regarding MU's financial accounting I noticed that when MUEI sold 90% of its interest in MCMS for $249M cash, MUEI booked a gain of $156.2M and MU booked a gain of $157.1M. It seems as though both companies' incomes were positively impacted. Since the sum of the gains ($313.4M) exceeds the purchase price ($249M), there must have been some double counting of the gains. I suspect that as long as MU owns a majority of MUEI's stock, MU must reflect MUEI's financials 100% within the MU financials. If not 100%, how would one explain the fact that the sum of gains exceed the purchase price? Another observation is that sales at both MUEI and MU should drop about $71M each from 2Q to 3Q as a result of divesting MCMS since both income statements reflect the sales at MCMS. Yet another point, MU owns about $600M worth of MUEI stock. When added to MU's equity, MU's book value totals $13.5/shr. Does anyone know whether this logic is correct? or should I assume that MU's stated shareholders' equity already includes MUEI's shareholders' equity? Ted The Technician (not an accountant)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next