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

To: John Graybill who wrote (48163)	9/10/1999 7:56:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

John, another great moment in financial journalism courtesy of Dow Jones (I think it was from yesterday): Micron: Recent Memory Price Rise Won't Affect 4Q Earns BUENA PARK, Calif. -- Micron Technology Inc. (MU), the largest U.S. maker of PC memory chips, has seen spot prices for memory products rise, a spokeswoman said. However, the rise in prices came after Micron, of Boise, Idaho, closed its fiscal fourth quarter on Sept. 2, so the pricing issue won't affect the company's fourth quarter earnings... That's dumb enough on its face, but later in the piece they note: Spot prices for 64-Megahertz memory chips have risen to around $10 recently from a low of under $6 in mid-summer... "the rise in prices" - so basically prices went from "$6" to "$10" in the 9/2-9/8 period? No. Let's see if we can help Dow Jones reason this out. 1) Kip shows up to talk to PM's. 2) Somewhere during the presentation, he speaks about how "rising prices" won't have an astronomically positive effect on the Q. 3) The quarter ended 9/2. 4) Prices rose after 9/2 5) Prices rose before 9/2 (note to Dow Jones: when the price of products move from $4 to $10 over a 3-month period, this can also characterized as a period of "rising prices") 6) Most PM's know that a price rise after the end of a quarter will not effect that quarters earnings. So, if Kip spoke of rising prices and their relation to Q4, logically speaking, which ones would he have spoken to - the ones that occurred before the quarter ended or after the quarter ended? So what information did your phone inquiry garner? The fact that any price rise occurring after the quarter ended will not affect the company's earnings? Isn't this a priori? How can crap like that get published? Did the editor responsible for that garbage sit back and go "yeah, we got to the bottom of what was said at the conference alright." Unbelievable. The MU spokesperson should be laughing her ass off over that one. A damage control tour de force. Bravissima! Good trading, Tom