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Technology Stocks : Micron Only Forum

MU 284.79

-0.7%

Dec 26 3:59 PM EST

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To: Skeeter Bug who wrote (34514)	6/7/1998 9:21:00 PM
From: Carl R.	Read Replies (1) of 53903

Let us say that MU can buy the TI facility for a low price because no one else wants it. That implies exceptionally low capital costs. Then if MU can lower the costs at TI to their own exceptionally low costs (and that is a big "if"), they have low operating costs and more volume. They don't need a larger sales staff, or much more in the way of office/administrative cost to move the chips, so the bottom line question for now is, can they sell the chips for more than the marginal cost of production. Or let's look at another scenario, MU buys the TI facility for next to nothing and shuts it down. Nahh.... Carl

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