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Technology Stocks : Micron Only Forum

MU 227.47

-0.5%

3:32 PM EST

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To: psujr who wrote (31475)	3/31/1998 12:06:00 PM
From: DavidG	Read Replies (1) of 53903

JR, No, it's like saying that your 200k mortgage puts you in serious trouble b/c you now have 200k in the bank, are losing 40k of that every three months, and have no other net positive income. Your assumption is that the $200,000 just sits in the bank and accrues 0% interest. Not realistic. Usually the yield is slightly lower than the rate of the loan...i.e. 7% loan vs 5.5 - 6% savings...which is $2000 to $3000 per year not $40,000 per year you alluded to which equates to 20%. My calculations also assume not putting the money to good use which might typically yield 10 - 15 % per year. Also does not assume other income and normal household expenses<g> Micron is not in great shape b/c their income is limited by a price war...but certainly are not in as bad a position as some would like us to believe...now SEA is in trouble...hence the presence of INTEL. I hope now you are beginning to realize how foolish the "forever bears" numbers really are and why they do not make money and can only afford out-of-the-money PUTS, which is a spiraling losing proposition that ultimately results in bankruptcy.:-) Good Luck Trading DavidG

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