Kerry, if you are trying to say that MU is going the way of Anaconda, I think you are wrong. Even Wang, who made much greater mistakes than MU managed (albeit barely) to survive. On the contrary, in the face of extremely difficult conditions, the management of MU has managed to navigate relatively well. They created this outfit that assembles PC and then spinned it off and then sold a chunk of it, they repeated the same feat with an additional outfit assembling some other electronic gadgets and sold it off, all these quite profitably, while maintaining their sight on what needs to be done to survive in this environment. Show me another company surviving as well (with still about $800 MM or so cash on hand) when their flag ship products undergoes a defacto devaluation of between 60% to 80% in one year and I'll say go out and buy it. A company managing to survive in such a devastating environment has all my respect (even when I am not long the stock). One of these days, balance between supply and demand will reestablish itself, and strangely enough, MU shows all the signs that at the end of this poker game, they will be standing with a winning hand when many others will have folded. Am I buying MU now? no, not yet, but 28 sure looks like a strong resistance area and if it holds above that price for the next two weeks, it could very well be another "shakes" period for me owning some MU (what an addiction).
Zeev |
