Larry,
Didn't see this posted on this thread, by Tom "the best there is" Kurlak, so here it is...BTW MU up +2 today<g>:
Dow Jones Online News, Tuesday, September 22, 1998 at 19:43
NEW YORK -(Dow Jones)- Merrill Lynch & Co. issued a research note
Tuesday that flew in the face of the recent rally for Micron Technology
Inc.
The recent upswing in prices for dynamic random access memory, or
DRAM, chips is unlikely to mean a quick return to profitability for
Micron (MU), Merrill analyst Tom Kurlak wrote. He projected the company
is likely to continue to post losses for another year.
Micron shares have risen as much as 16% since last Thursday on
optimism that the worst is over for the memory-chip maker. Company
officials said Friday at a conference they had seen the first upward
bias in contract prices for DRAM chips in three years.
Micron has been pressured as prices for some varieties of DRAM chips
declined by as much as 90% over the last two years. In the last two
months, prices for the chips have gone up in the so-called spot market,
a secondary market that tends to be a leading indicator of where prices
are headed, a company spokeswoman said Monday.
But Kurlak projected DRAM prices could begin to decline again.
"We recommend that investors stand by for a 1999 price battle in what
seems to be a developing world slowdown," he wrote. "We continue to view
this stock as having a high degree of downside risk."
Micron's NYSE-listed shares closed down $2.937 at $29.688, on volume
of 5.5 million, compared with a daily average of 4.5 million.
Christopher Grimes; 201-938-5253
Copyright (c) 1998 Dow Jones & Company, Inc.
All Rights Reserved. |
