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Technology Stocks : Micron Only Forum

MU 237.16

+4.6%

Dec 5 9:30 AM EST

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To: Vasu ganesan who wrote (6109)	12/14/1996 8:42:00 PM
From: Bipin Prasad	of 53903

Vasu, I would even dare touch the momentum or trend analysis. If the DRAM sales of Micron has shrunk so dramatically in the past 3 quarters (1000 to 700 to 350 million) you have to come to this inevitable conclusion: Micron's market share in this segment is shrinking (since the DRAM market itself did not shrink by 66% in dollar volume) Shrinking market share has two further implications: 1. Further reduced ability to influence the market (pricing) 2. Reduced influence with US Gov and reduced ability to use the strong arm of US Gov to keep out more efficient manufacturers. Keeping out low priced memory has two camps in the US. PC manufacturers like lower prices, it helps their sales. They will be against quotas and tariffs, etc. Micron will be for it. They may feign a liking for free market system, but they have used dumping charges as an effective tool to thwart free and fair competition for short periods of time. With a reduced market share their influence will wane as well. They will continue to just feed on the crumbs. Not bad, but not great either. And certainly, no reason to justify the 100%+ premium.

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