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

To: Freedom Fighter who wrote (67081)	9/1/1999 2:31:00 PM
From: Knighty Tin	Respond to of 132070

Wayne, the latest prices in the spot market are about $7.10, which is near MU's breakeven. However, the reasons for the higher prices are as follows: 1. Inventory building by OEMs ahead of Xmas. This usually runs from Mid-August until the middle of this month, though it has occasionally run into early October. This year, I suspect the OEMs are greatly overbuilding as they face nuclear winter and aren't aware of the fact. 2. Some major is having production problems. The rumor is MU, but they deny it. 3. Continued inventory building to reduce losses. It will be fun to back out the units on MU's balance sheet this time around. Those losses have to be realized some day. 4. Lower contract prices. 5. The blackout in Taiwan has caused a panic buying mood and Taiwan is the main spot market for DRAM. 6. Samples of RDRAM being purchased by OEMs who will offer, but not necessarily build, Rambus chip machines.