Micron Only Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum

MU 246.84

+4.2%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SlowThinker who wrote (41811)	1/1/1999 1:09:00 PM
From: Dave Gahm	Read Replies (2) of 53903

SlowThinker, Historically, MU's management has continuously ramped output with no regard for demand or the price consequences. They have focused exclusively on reducing costs. Are you suggesting they will change this strategy and gear output to expected demand now that they have a far more significant share? It is intriguing that MU's bit output only rose 10% after digesting the TXN facilities. The Milano shutdown for upgrade does not fully explain this, especially in light of past statements that the JV operations could be upgraded to .21 linewidths without slowing production. Boise alone should have increased more than 10%....unless of course those rumored yield problems are more troublesome than most believe. Is it possible that MU chose to reduce production in order to keep pricing firm? It seems out of character, but might be a smart move. Whether my choice or circumstance, significant production was removed, albeit temporarily, implying that demand is really nowhere near strong enough to absorb available capacity. If the bear case of a PC inventory correction and no robust Y2K demand prove to be true watch out below. Happy New Years, Dave

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next