Semi-Equips - Buy when BLOOD is running in the streets! Message Board

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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 152.78

-5.4%

2:09 PM EST

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To: Carl R. who wrote (7210)	10/31/1998 11:06:00 PM
From: Zeev Hed	Read Replies (2) of 10921

Carl, as far as MU is concerned, the TI facilities were bleeding at more than $50 MM per quarter, if memory serves. I do not know of any model that show MU profitable this quarter, and I must admit that with their accounting techniques it is difficult to see what is their true break even point. I think that they are still delaying depreciation (or write off) of the Lehi empty facility, but under normal accounting standards, that could involve few tens of millions bucks per quarter. I think that TI and INTC vote of confidence (to the tune of financing $1.2 billion) indicate that MU will survive. If MU survives, it will have some 18 to 20% of the DRAM market if not more which could put them at sales of close $5 to $6 billions in 2001, but whether or not these sales are going to be profitable depends a lot on what final shape the Korean and Japanese DRAM manufacturers will be in. I just cannot guess the outcome there. One thing is clear, Korea needs the DRAM export sales to survive, and they will do whatever is necessary to keep their market share. Zeev

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