Mike, Strengthen those thumbs, El Duce. <G>
Yeah, what MU needs is more money to lose and more interest to pay. However, the $750 mm does solve the problem, at least short term, of them wasting nearly $280 mm of their meager cash horde last quarter.
The question of whether it is bullish or bearish comes down to one basic question, is TXN smarter than MU? They always have been in the past. Even though, on the face of it, MU just gave up worthless stock and an IOU they will never pay for an "asset," TXN got rid of a liability that was eating their cash flow. MU has also taken on a major shareholder who might be considered an insider to when DRAM will turn or not turn. Big overhang of shares to be sold some day.
So, the loss next quarter will be huge, but it won't count because they are "digesting the deal." MU cannot afford to keep up on the technological front, so this type of blue smoke and mirrors is the only way to give the demented bulls a ray of hope.
MB |
