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Technology Stocks : Micron Only Forum

MU 344.97

+5.5%

3:59 PM EST

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To: Grim Reaper who wrote (5639)	12/9/1996 11:08:00 PM
From: Peter Shaw	of 53903

Grimmy, I think you miss the point on DRAM fundamentals. China is a fragmented market being influenced greatly by the flood of cheap clones using Far East memory cheaps (which have been admittedly inferior in quality). Putting 32 Megs into current pc production still generates tiny returns (if any at all) for MU when compared with last years margins. And industry wide sales are down 18 - 20% under last year. Where's the beef? Microstamp will generate $$$ for MU down the road, and I believe I've thrown out some forward looking numbers which include ample room for miracles to the upside. I know a trend when I see one, and you are correct that it is still intact, but MU has a volatility which lends itself to quick changes in trend when influenced by fundamental news contrary to bullish perceptions. I think the rush of seeing huge volume on the short covering highs you chase reveal a bit of the addictive personality traits you describe. Just remember, the new target for a major short squeeze is $40, and it's gonna take a bit more than the btb to get you there. They can be awfully fun when you're trading them, I'll admit, as it's a technique I've used often. Cheers, Peter Shaw

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