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

To: Thomas G. Busillo who wrote (47874)	8/29/1999 1:49:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

thomas, you are a refreshing oasis in a irrational desert.

To: Thomas G. Busillo who wrote (47874)	8/29/1999 4:20:00 PM
From: Chas	Read Replies (2) \| Respond to of 53903

Tom, Do you think I have forgotten Mr Whittington, of course not, but if I see a report I will post it for all to see. Merrill Lynch just published a new report on DUV stepper shortage and commented about DRAMs, heres some highlights: Highlights: ú The Merrill Lynch semiconductor team believes that an emerging crunch in availability of advanced deep ultra violet (DUV) steppers is going to begin to impact capacity expansion plans in some parts of the semiconductor industry. ú Tightening supply is driving prices across the sector more aggressively than we had previously thought - as a result, we are revising our forecast for 1999 billings growth upwards, from 15% to 17%. We believe that billings in 2000 will grow further, by 18.5%. ú In particular, we believe that second-tier manufacturers in the DRAM market are likely to become capacity constrained during the next two quarters. We are revising our earnings estimate for Micron Technology(MU; C-1-2-9; $69 «) upwards, and we are also revising our intermediate-term investment rating upwards from accumulate to buy. ------- Taiwanese DRAM companies are currently ramping 64Mb DRAM production in expectation of a sustained market upturn in 2000. However, the second-tier players will likely face capacity constraints and the inability to expand capacity as fast as leading DRAM companies due to limited supply of DUV machines. Large DRAM competitors as well as large foundries have a sourcing advantage due to size of past business and future commitments to deep UV vendors. Aggressive foundry capacity expansion, mainly by TSMC and UMC, will put further pressure deep UV demands. ---- We are upgrading our intermediate-term rating on Micron Technology to buy In particular, we believe that second-tier manufacturers in the DRAM market are likely to become capacity constrained during the next two quarters. We are revising our earnings estimate for Micron Technology upwards, and we are also revising our intermediate-term investment rating upwards from accumulate to buy. Our intermediate-term accumulate rating for Samsung(SSEKF; C-2-1-7; KW212,000) is reiterated as well. ---- The result will likely be firmer pricing as those companies begin to experience capacity constraints. --- Since the Semiconductor team at Merrill published it together, I guess we cant shoot the individual writer here. Good trading, I am long for now, but its not because of Rick.