Texas Instruments - Good buy now or should we wait? Message Board

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Technology Stocks : Texas Instruments - Good buy now or should we wait?

TXN 159.35

+3.9%

Nov 21 9:30 AM EST

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To: Patriarch who wrote (4289)	2/24/1999 10:55:00 PM
From: Charlie Smith	Read Replies (1) of 6180

From TheStreet.com: SAN FRANCISCO -- Micron Technology (MU:NYSE) may defy analysts' expectations and post a profit in its fiscal second quarter ending Feb. 28. That's the buzz surrounding the semiconductor company at the BancBoston Robertson Stephens Technology '99 Conference. "According to our models, it looks like Micron might be profitable this quarter," said Edward Hemmelgarn, portfolio manager at Shaker Investments, who owns Micron shares and went to the company's presentation Tuesday just to make sure business still looked good. And it did to him. Hemmelgarn said the breakout meeting was very positive and estimated that Micron can earn as much as 11 or 12 cents per share in the quarter. That would be Micron's first profit in five quarters and well above First Call's consensus estimate of a 2-cent loss -- heck, even above BancBoston Robertson Stephens analyst Dan Niles' estimate for breakeven. Niles said at the presentation that Micron is probably his "best idea over the course of the next couple of years." Niles has a price target of 200 for Micron shares by 2001. Also, Donaldson Lufkin & Jenrette upgraded the company Tuesday to buy from market perform with a 12-month price target of 100. The stock was up 4% in Wednesday trading at 73 3/8. But what are all these bulls seeing in Micron? Simple, said Hemmelgarn. A few factors are falling into place for the company, he said, including most importantly, stabilizing DRAM prices. Micron CEO Steven Appleton told investors that DRAM prices have been relatively flat since September. Thanks to increased production and higher sales volume, Hemmelgarn estimated, Micron's gross margins will increase to 35% to 40% this quarter from 11% last quarter. This could be some pretty big stuff for Micron. But the best part has yet to come. Analysts and investors say Micron's profits could continue rising for another two years. Sure glad they didn't sell this hugger... Charlie

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