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Technology Stocks : Micron Only Forum

MU 394.69

+3.1%

Feb 6 9:30 AM EST

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To: Skeeter Bug who wrote (32655)	4/30/1998 10:10:00 PM
From: AHale	Read Replies (3) of 53903

I subscribe to an excellent newsletter called "The High-Tech Strategist" by Fred Hickey. Last month's issue had this to say re: MU: "Someday, Micron investors will discover that the only time that MU was substantially profitable was in the PC glory years, when demand outstripped supply for a short time. Over a ten-year period from 1984 to 1993, Micron earned a total of $1.41 a share, or 14 cents on average per year. Now they're losing their shirts. Bit demand is slowing and all the DRAM competitors are going to triple and quadruple 64-Mbit production this year, mostly using capacity already in place. My sources tell me that MU had a record 45-50 million 16-Mbit parts in inventory, which they started dumping this week (April 2) at $2 in a panic, after no rebound materialized post the Asian year end. There's a reason why S&P placed Micron on Creditwatch with negative implications last month. They burned almost $200 million in cash last quarter. With ASP's dropping another 30% this quarter, that number is going to get even bigger. Their third-tier PC business is a likely shakeout casualty. I'm holding my ground." Food for thought from a guy who has been on the money.............

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