Carl, Heck, the sidelines are no fun. And you never get your letterman's jacket or a cheerleader over there. <G>
In reality, option sellers have been killed on this stock the past year. With a trading range of 60 1/2 to 22, the only live option seller is the new option seller. The old ones are out washing windows at intersections. Though not as profitable for me as the move from 95 to 17, mainly because I wasn't sure what crazy story Kurlak would make up next and didn't bet as much as I should have at the top, the move from 69 to 22 was pretty nice. As will be the move from the 30s to 6 this time. Always bumpy, because this stock has a Jim Jones like charisma for those with a spiritual thirst. But, like Jones, there is nothing but poison Kool Aid waiting for MU bulls.
Low cost is fine if you consider only the marginal cost to produce another chip. But when you look at total costs, MU is not in the game.
As far as technology leadership goes, MU's stated policy is to be a laggard. In normal times, they come into a product after the leaders take out whatever profit will be made in that product cycle. What they try to do is keep costs as low as possible, float some cash from Mr. Potato Head and suckers on Wall Street to keep them afloat, until the year or two per decade of shortages where they almost produce some free cash flow adn can sell stock to the herd. This time they may not make it unless Simplot is willing to pour money into this sinkhole.
Good luck,
MB |
