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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Merritt who wrote (62925)	6/22/1999 11:43:00 AM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

Merritt, I don't think so. The only way MU can beat the silly numbers, which get less silly every five minutes as analysts lower their estimates, is by building inventory to the sky. Applesauce already gave some solid hintst that they are doing that, in spades. Here is the basic problem: chips sold, on average, for about $6.50 last quarter. MU's net cost (not the moronic gross cost they always tout) was about $7.50. So, if the entire month of May's production was put into inventory, they may beat the estimate. And they may have a few contracts at higher prices that didn't run out until the end of April. But with chip sales now at $4.50, I would hope that even the dullards in the financial community could see the writing on the wall. Even better, this net cost per chip does not count the interest that MU will have to start paying on its mountain of debt early next year. I still don't know how they suckered bond buyers into accepting no interest for two years, but the two years will be over soon.