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

To: A. A. LaFountain III who wrote (46982)	7/7/1999 10:51:00 AM
From: Joe Donato	Respond to of 53903

Tad, Isn't it possible the Micron, who's strategy is based on low total cost of production (which includes depreciation), competes with companies that ONLY seem to view costs in terms of free cash flow? If you look at the various debt structures of the companies that Micron has to compete with, you can see why their competitors aren't playing on a level playing field. What you call a "mindless pursuit", in my opinion is a rational, pragmatic, strategy to create a return on assets to their shareholders.

To: A. A. LaFountain III who wrote (46982)	7/7/1999 10:53:00 AM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

Tad, absolutely agree on management. They're operations guys. Outstanding operations guys, really. But they could have used a voice in there that had a broader perspective. Someone who really didn't care whether they made memory chips or guitar picks as long as they were creating sustainable firm wealth. Outside of their core business, they've yet to prove they can grow anything. If the gambit pays off, maybe it doesn't matter. But if it does pay off, I still don't think the strategy of "wreck the industry and be one of the last one's standing" is optimal. In the short-term, they're squandering their competitive advantage. The point of being a low-cost producer is not "lose less money than competitors". Best Reagrds, Tom