Jeff, the Gruntal report is very interesting.
They've taught us that "cash is king" and debt is something you ignore. Why look at this amazingly thorough run through MU's balance sheet:
Furthermore, Micron's balance sheet is strong and cash rich, totaling approximately $1.8 billion, almost $8.00 in cash per share, including the Intel (INTC-NASDAQ-$58.00-Strong Buy) investment.
Actually...wait a second...1,800,000,000/8=225,000,000
Oh no...please don't tell me...
Uh, Mona, you may want to come up to speed on the shares outstanding.
216.0 million?
That is 216.0 million shares outstanding on page 1 your report today right?
Now that raises an interesting question.
What was your estimate for weighted shares last quarter that enabled you to flat-out nail the estimate? You were one of the people who were in the .09-.12 range right? And yet I see on page 1 of today's report that you are presenting their SO as 216.0. MU used 263.4 and 272.9 million basic and diluted respectively to come up with their EPS figure last quarter.
What were you using?
And if you were using the right number why do you have 216.0 million on your report?
And as far as this quarter and next quarter and FY00.
I mean, logically speaking if you're estimating FY00 EPS @ 3.00 and the formula for EPS is NET INCOME/SO and you're showing 216.0 on page 1 of your report, that would imply FY00 net income of $648 million.
However, if you use the figure for shares outstanding provided on page 1 if their most recent 10-Q, 250.395 that would only be an EPS of 2.58 wouldn't it?
So shouldn't you really be lowering your estimate? ACtually shouldn't you really be lowering all of your estimates if you're using 216?
I mean, that's how it works right? You have your own independent model through which you derive net income and then you divide by SO?
And let me just quote the 10-Q verbatim:
The number of outstanding shares of the registrant's Common Stock as of April 5, 1999, was 250,395,896.
And yet, your research pieces of 4-9-99, 4-22-99, and 5-17-99 all continue to show SO as 216.0.
WTF is the problem here?
Good trading,
Tom |
