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

To: DJBEINO who wrote (48088)	9/8/1999 4:19:00 PM
From: Naggrachi	Read Replies (2) \| Respond to of 53903

<<Micron Tech Says Rising Prices Won't Help 4th-Qtr; Shares Fall >> Kudos to Skeets!!!

To: DJBEINO who wrote (48088)	9/8/1999 5:05:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

DJ, the Kipster never ceases to amaze: Micron Vice President Kipp Bedard told analysts and investors at a Salomon Smith Barney conference in New York that rising spot prices for dynamic random access memory won't help results in the quarter ended Sept. 2 because much of what was sold was older inventory that cost more to make. Sure, "older inventory" cost more to make. From last Q: FG = $238.6 M WIP = 146.4 M Are they using LIFO? One would think they inventory accounting method would be contained in an SEC filing, however, I couldn't find it in their most recent 10-Q or the 1998 10-K. However, if the question is "why won't rising spot prices make a dramatic difference?" isn't it more: A) They sell an overwhleming majority of product at contract prices B) Their contract prices have significantly trailed the spot all quarter All those reiterations we've seen over the last month - how many of them even mention that? And speaking of which... ...hey, someone wake Mona Eraiba up over at Gruntal. She missed today's analyst riot. She had a great quote about their inventory in a report just after last quarter earnings. Back when everyone was concerned that they had X weeks of inventory, she wrote something to the effect that this figure was inflated because the market price of the goods was now below their cost. Somehow this was supposed to be a positive <g> If he's trying to burst the expectations of people who think they'll return to profitability this Q because spot prices are rising - fine. I still think the consensus of -.17 is too low. Good trading, Tom

To: DJBEINO who wrote (48088)	9/8/1999 5:31:00 PM
From: Skeeter Bug	Respond to of 53903

>>Micron Tech Says Rising Prices Won't Help 4th-Qtr; Shares Fall << i knew it! i knew it! i knew it! ha ha ha ha ha ha! now they are trying to pimp q1. >>won't help results in the quarter ended Sept. 2 because much of what was sold was older inventory that cost more to make.<< this should insult the intellectual capability of a door knob. costs higher than revs = loss. thanks, kip. older inventory? wtf, you moron. you lost a dime w/ a $7 asp last q. spot prices were way over $7 for much of last q. did you save some 1998 inventory and finally dump it this q? if you did, then your system isn't fifo and i'm not sure that kind of accounting is legal. if you didn't, then your statement isn't worth micron debt. >>Bedard also said Micron is seeing most of the volume of memory chips on the spot market sell at about $10, not the $13 price that some analysts and chip brokers have quoted.<< honesty? oh my. a first. however, he didn't discuss contract pricing below $6 or $7. this wreaks of total price manipulation. nobody sells to spot so prices go way up. this is unsustainable.