SI
SI
discoversearch

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 242.00-2.0%Nov 17 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: eddie r gammon who wrote (31444)3/31/1998 10:10:00 AM
From: mike iles  Read Replies (2) of 53903
 
Eddie,

Intel-Samsung makes sense to me ... Intel's got more cash than it knows what to do with. You got to wonder why MU isn't talking to Intel? Despite what the forever bulls say MU's financial position isn't quite as simple as saying they're sitting on $1 billion cash. Some weirdo conservative types subtract out debt when looking at a company's finances. In MU's case you've got $935 million cash and debt of $849M (this includes the convert) ... leaves net cash of $86M. Trouble is that MU doesn't own all that cash. MUEI's share is $309M (most of which they got from selling the contract mfg. business) and MU can't touch that for the semi business. So their real cash position is -$223M. Yes, forever bulls they're in the hole! I track this net cash number across quarters and last quarter it dropped by $182M which is the biggest drop I can recall in a quarter when they didn't spend much on plant and equipment. Where the cash went was losses from ops. and their continued buildup of inventory ($42M) and accounts receivable ($24M) ... strange that working capital requirements are going up when their business is shrinking, usually it's the opposite. Unless memory prices stage a DRAMatic recovery these guys are going to have to address their financial/operating problems. They can't go on hemmorhaging cash at this rate.

regards Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News