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Technology Stocks : Micron Only Forum

MU 230.24

+2.5%

3:59 PM EST

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To: Skeeter Bug who wrote (36201)	7/14/1998 9:26:00 AM
From: DavidG	Read Replies (3) of 53903

Skeeter, Welcome back. I think you are taking my statement out of context with my conversation with LT. Although Micron lost $106 million last quarter does not mean they are not making money on DRAM chips this quarter. What we constantly have in this DRAM industry are moving targets that not all SEMI companies are getting the opportunity to take shots at any more, given their limited funds and inability to upgrade their fabs. Now last Quarter Micron lost significant money on EDO which dropped down to $1.50 and in some cases a $1. Similar situation with SDRAM although prices this quarter have at least stopped dropping while Micron production costs are also dropping. So it is probable that as MU improves their efficiencies as prices stabilize they will be back to profitabibility on this product line while OTHER SEMI companies are still losing money...but this is small potatoes now.<g> ... the big story is that Micron now has 70% wafer starts for PC100 chips...and this is in a market where a LIMITED number of the semicomputer manufactures are competing, and they are making money on these products with the current premiums... and in some cases there is an uptick in prices. Also Micron is upgrading to .21 micron in their fabs which will increase their capacity while significantly reducing their costs... this will blow the socks off most of their Asian competitors. The asians see this, plus MU's new TXN acquisition, and are now realizing they do not belong in this business...so as they move out of the business and the competition is reduced, the prices will stabilize or rise giving MU significant profits. Good luck trading DavidG

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