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Technology Stocks : Micron Only Forum

MU 230.24

+2.5%

Nov 26 3:59 PM EST

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To: yard_man who wrote (41087)	11/26/1998 10:30:00 PM
From: Carl R.	Read Replies (2) of 53903

The article said that sales were increasing and that supply was short. Growing PC sales will increase prices. Declining production by Korea will increase prices. MU not offering chips for sale will increase prices. These all make sense, but they really don't add anything significant because they are obvious. I think somehow you got the idea that MU couldn't sell chips, but that was not what was said. What was said was that MU wasn't selling any chips, presumably the article refers to spot market prices, and to the fact that MU used to sell a lot of chips into the spot market but hasn't been doing so of late. The one thing in the article of importance and that is the fact that the author stated that MU has not been offering chips for sale. The question is why. Bad yields? Holding back chips? Or just that contract sales were so strong that they have no chips for sale on the spot market? I am pretty sure that it is true that MU is not selling much on the spot market as it was reported here earlier. Our best guess is that it is due to strong contract sales. This will reduce their ASP somewhat, but if it is bad yields (as Fabeyes suggested) the ramifications are not good. Carl

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