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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Howard Bennett who wrote (46236)	6/10/1999 6:45:00 PM
From: Tom Gebing	Respond to of 53903

Chips up on report By Jeff Clabaugh, CBS MarketWatch Last Update: 11:26 AM ET Jun 10, 1999 NewsWatch A rosy report from the Semiconductor Industry Association about rising sales for the industry gave stock in a number of chip makers a nice midweek boost. Moving into the most active list was Micron Technology (MU: news, msgs). The DRAM chip maker jumped more than 10 percent on the SIA report and on an MU recommendation from a Gruntal & Co. researcher. Today on CBS MarketWatch Stocks close down 69 points Sepracor earnings estimates slashed Investors in haze over Disney Net plans Paul Allen moves onto the Island StockWatch: It's an e-eat-e world More top stories... CBS MarketWatch Columns Updated: 6/10/99 5:56:36 PM ET At the SiliconInvestor MU message board, the cheers mixed with suspicion. A. A. LaFountain III: ..."It's interesting that the SIA forecast incorporates a 25 percent DRAM revenue growth component. It sure looks like price per megabit is running about 50 percent of last year's level. If revenues go up 25 percent and prices decline by 50 percent, then units have to grow 150 percent....the SIA forecast seems to me to be unduly optimistic in light of current DRAM realities." Thomas G. Busillio: ..."I find it amazing that after the type of price erosion we've seen that their "new absolute number 5 months into 1999 would just happen to give a 1999 growth rate EXACTLY equal to (a) forecast back in November. Almost raises the question of which came first; the growth rate or the number that the growth rate keys off of <g>." Micron's move up on the news felt good to shareholders, but maybe not good enough yet. Carl R: ..."I agree that they do a good job of summarizing the reasons for optimism. However I'm still hopeful that there will be a better buying opportunity sometime this summer. In the meantime, I'm not trading this stock." The Gruntal & Co. recommendation was also a boost for Micron Technology, a stock that has traded in a range of 20 to 80 in the past 52 weeks. Gruntal's Peter Green said Micron's money flow is attractive and with competitors leaving the business he saw fit to put a target price of 60 to 65 on the stock. Some suspicion about that too from MU posters. Chris Pedicini: ..."My only question for "Grunts" is the entire argument is premised on "Micron is the low cost producer". Well, excuse me, but I did not know that Gruntal had access to the cost structures of the Japanese, Taiwanese and Korean counterparts. If they have that data, then they should lay out the cost and financial structures...side by side with Micron. Oops, I forgot. This may require real research." Still, others weren't about to look a gift horse in the mouth. Carl R: ..."I've been disgruntled before, and always wondered what it would be like to be Gruntaled <VBG>."