ramsey, dram pricing is up and semi costs down so the koreans would no longer be dumping, if they were before. since mu can't compete in the market they often resort to litigation to further their agenda. they normally lose, however, sometimes they win with small punative damages that end up being 1% or so by the time it is all figured in. bfd.
dumping is selling below net cost, not gross cost. you can sell at a gross loss and not dump. in the case of an mu, for example, they'd be losing $100s of millions a year selling at net. that is reported losses.
actual available cash would dwindle much more quickly. they need to spend a billion plus per year to compete. the intel dilution and the txn deal set them up for another year, but at a cost.
btw, regarding dan niles. for those that don't know, dan is a running joke on the mu thread. he's called the bottom consistently for 2 years. duh, he's got to be right eventually, huh? NOT! ;-) after he issued a raging buy in mid 97 when mu was $50, he got on the conference call with mu and congratulated them on a great q - when the stock was about $25 ;-) with great meaning a 50% loss, this guy has little expectations ;-)
mu and company have always stuck me as incredibly shady folks. their level of bs is astounding. now the press is catching on. looks like mr "off by miles" niles has brought the spotlight on himself this time. first, somebody trade 5k dec out of the money calls on tuesday - very high and really unusual given that there were 3 trading days available. that is $25 million worth of out of the money calls traded hands with 3 days left to expiration. those calls are now valued at $150 million and the only news of substance was from mr niles. seems this info may have been leaked.
niles also could not say anything nice about mu over the near term so he went with a 3 year estimate - this from a guy that can't predict yesterday consistently. very unusual. here's the news story...
cbs.marketwatch.com
this is even more absurd when you look at the avg analyst eps estimate...
stockselector.com
off by miles niles' estimate is 3005 above avg. i wonder if he had any of those calls...
imho, this type of shady stuff is the expectation and i'm surprised when it doesn't happen. -ng- |
