A thesis seems to have been presented by various posters here, if I understand it correctly, that Micron hoards inventory when the price is dropping in order to reduce supply and force prices up again; to be able to eventually sell the inventory at a higher price.
However, since the financials must show the inventory at the lower of cost or market value, the approach of the end-of-quarter becomes an incentive to "cut losses" and quickly sell as much as possible whatever the price.
This, of course, causes the price to plummet sharply, which is exactly what we have seen in the last few weeks.
Correct me if I'm wrong, but I believe that Micron's end-of-quarter cut off is May 8, or something like that.
Now here is my own speculation: if all the above is true, Micron may now start to hold back parts, accumulating inventory once again, in an attempt to force prices back up. This is pure guesswork on my part.
Comments?
Land_Lubber
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