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To: John Graybill who wrote (46341)	6/15/1999 10:05:00 PM
From: A. A. LaFountain III	Read Replies (2) \| Respond to of 53903

John: re "poor editing" I'm with you, but how about poor thinking? If there's excess inventory, there are only a few ways the problem can be addressed: 1) reduced production (the Koreans have been there, done that; don't hold your breath for Round what? 3? 4?); 2) an increase in demand, as in new software driving the need for more DRAM per box (but desktop performance doesn't appear to benefit much beyond 64MB and the low end appears to be price-constrained); 3) UFO's sucking up the excess and removing it to a galaxy far, far away; or 4) the most likely - a stimulation of demand by a reduction in price. Incentive programs? Call it what you will, but the market only clears through price - always has, always will. - Tad LaFountain P.S. I guess there's another route - the DRAM could say it's from New York and try to end up in the Senate. - TL

To: John Graybill who wrote (46341)	6/15/1999 10:20:00 PM
From: Thomas G. Busillo	Read Replies (2) \| Respond to of 53903

John, how about a paragraph thatwould have gone: "Although some observers note that the market itself has already given OEM's a not insignificant 'pricing incentive' in its own right and recent research has questioned the elasticity of demand for DRAM per box at certain price points, far be it for anyone to say that their basic strategy seems to be 'make as many DRAM chips as you can, as cheap as you can, and then expect it somehow to work out sometime in the future'" Good trading, Tom