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Technology Stocks : Micron Only Forum

MU 207.36

+3.0%

Nov 21 9:30 AM EST

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To: Thomas G. Busillo who wrote (44469)	3/27/1999 9:02:00 PM
From: Tim McCormick	Read Replies (1) of 53903

Tom, I guess I didn't latch on to that exchange as being a big deal at the time. This was probably an error in perception on my part, as I assumed Mu's answer was a given. I think it did highlight the reality of last quarters decent pricing being a result of seasonals, Korean strike and MU's test bottleneck. In other words, this pricing was temporary supply driven rather than demand driven. I believe the real eye opener for the bulls is the "bits per system flat" comment. As this is a cornerstone of their demand argument. Not to mention it is also what drove earnings in 1995, and is what propelled this stock into a higher profile level. The premium price this stock commands over the bears theoretical assumed value is largely based on the bulls hope of a 1995 like cycle high. If the sub $600 PC phenomenon is a powerful force in keeping bits per system flat, then even a better PC unit growth environment will not create the required demand for such a cycle. Tim

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