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Technology Stocks : Micron Only Forum

MU 236.48

+2.7%

Nov 28 9:30 AM EST

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To: Jerry Denkera who wrote (90)	5/24/1996 10:53:00 AM
From: Bipin Prasad	of 53903

Jerry, I agree with you on one point. As I sit back in my armchair and manage Micron with remote control, this is what I see: 1. Postponement of Lehi Fab - good financial move. 2. Partnering. Where is it ? Micron had better move fast before all the teammates are spoken for. Last week I had to scratch off Siemens and Motorola ! -- so far no moves 3. Next fab will be 64M. Companies that are currently building 16M fabs to come on-line will be toast (or at least loose $1-2 billion per fab - this includes Samsung). In hindsight point 1 was an even greater move - but done unknowingly. -- so far no announcements 4. Crank up the volume on MUEI. Micron should leverage the vertical integration and provide 2 to 4 times RAM to the PC maker that they own 80% of. This move will benefit them in two ways: i. Improve MUEI standing and shares value and benefit themselves being a 80% owner. ii. Force other PC makers to attempt a match which will dry up excess memory in less than a week. A single determined announcement in this regard will have dramatic effect on DRAM prices. Point number 4 is a very obvious move. BUt they are not doing it. Leads me to conclude that they can't. i.e. they have no memory to spare. This is exactly what Micron investor relations told me last week "They have NO inventory". In that case I suggest option 4a to Micron management. 4a. As 80% owner and board members stronly recommend to MUEI management the following strategic move aimed at upping the ante - Double the amount of memory on all PC's they supply effective immediately. Marketing ploy to test the waters before official announcements: 4ai. Offer very-very low cost upgrades 4aii. "Accidentally" ship PCs with 4Mb more than ordered at no extra charge. 4aiii. Change the "standard" configurations. The lack of inventory wont affect Micron directly, but the indirect effect of competition among PC makers will dry up excess inventory almost instantaneously, stabilize price and hence affect Micron. If ever there was a time when Micron needed the expertise of a potato magnate, it is now. Last time they came thru with flying colors. It remains to be seem if they can act fast enough and with vision this time around. By the way, when I have all the facts and figures on my Web page you will see that the big scary competitors are neither that big (in semi) nor that scary.

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