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

To: zsteve who wrote (46368)	6/16/1999 5:32:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

zsteve, Simplot's retirement might have had a lot to do with today. How is this possible if the BusinessWire PR publicly announcing his retirement is dated 4:01 p.m. today ? Bedard also said J.R. Simplot, the potato magnate who was an initial investor in Micron in 1978 and is still influential in the management of the company, will retire from the board soon. Simplot, 90, owns 9 percent of Micron's shares outstanding, according to the most recent filings. That's from the Bloomberg piece last night. Although for some reason, Simplot's quote in the PR sounds really familiar. I don't know. As far as the stuff from ABN Ambro, my question to Mr. Wu is the following: "Sir, does your surprise over the fact that DRAM prices may by closing in on a theoretical threshhold due to the laws of microeconomics kicking in at the firm level for certain players with obvious industry-level implications reflect a prior belief that this round of price declines was expected to follow a more-or-less linear trend of 35% price declines every 6 weeks into infinity, in the process moving through various scenarios including one in which DRAM players would be giving away DRAM parts to OEM's, then later another in which they were paying OEM's to take parts off their hands, then another in which although it cost them X to make each part, they were paying OEM's X times 4 to take them?" Good trading, Tom

To: zsteve who wrote (46368)	6/16/1999 5:40:00 PM
From: Knighty Tin	Respond to of 53903

Z, did you notice they didn't mention the analyst's name? Maybe he has that stipulation in his employment contract. <g>

To: zsteve who wrote (46368)	6/16/1999 6:25:00 PM
From: Thomas G. Busillo	Respond to of 53903

zsteve, let's hear it for Reuters and Bloomberg for failing to note that although Wu/ABN Ambro raised their rating, they lowered their estimates and are now projecting losses for the next 2 quarters. That's financial journalism? Put the upgrade in a headline. Make sure you put the price targets in there. Definitely do ignore a decrease in the estimates. From WSJ Interactive: ABN Amro analyst David Wu, who upgraded Micron's stock to buy from outperform, said the recent decline in DRAM chip prices will create losses for Micron over the next two quarters. For the third quarter ended May 31, Wu estimated a loss of 7 cents a share, down from his earlier estimate of a 2-cent profit, and for the fourth quarter a loss of 12 cents, down from a 10-cent loss. Those numbers are sharply lower than the consensus of analysts' estimates, which target earnings of 2 cents for the third quarter and 9 cents for the fourth. But Wu said that as prices stabilize and demand increases for Micron's 64-megabit DRAM chips, the company will return to profitability in its fiscal first quarter ending in November. Good trading, Tom