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To: Lucretius who wrote (84088)	3/22/2001 1:01:29 PM
From: UnBelievable	Respond to of 436258

POS Lives Up To Its Reputation Micron Up -2: News Also Boosts Dell, Compaq-Analyst>MU NEW YORK (Dow Jones)--Investors snapped up shares of Micron Technology Inc. (MU) Thursday on news that personal computer makers have reduced their excess inventories. In a Wednesday night conference call with investors, Micron noted the inventory reductions and released part of its second-quarter results, which were mixed. Micron, Boise, Idaho, is one of the world's largest makers of semiconductor memory components. Getting rid of excess inventory is the first sign that increased demand for PCs lies ahead, according to analysta. "This is the first step to any sort of recovery," said Eric Rothdeutsch, an analyst with Robertson Stephens. "The stage is set so that should the demand for PCs recover, it will boost demand for chips as well." Micron still faces problems, including falling prices on dynamic random access memory, or DRAM. During the conference call, Chief Financial Officer Bill Stover said the average selling price for DRAM in the second quarter was $4.65 a chip. That's down about 50% from last quarter. Although Micron executives indicated that prices have stabilized over the last couple of weeks, the cost of chip manufacturing still exceeds the selling price, analysts said. "I don't think we will see a sustained move upwards in the stock until the DRAM pricing recovers," Rothdeutsch said. A Micron spokesman was not available for comment. The news of lower inventory levels lifted shares of computer makers Dell Computer Corp. (DELL) and Compaq Computer Corp. (CPQ), according to Vincent Benedetti, an analyst at Gruntal & Co. "This is the first positive news from the industry in quite some time," he said. Shares of Micron recently were up $4.25, or 10.1%, to $46.26 on volume of 10.4 million, compared with average daily volume of 9.3 million. Shares of Dell changed hands at $25.69, up $1, or 4.1%, while shares of Compaq recently traded at $18.90, up 75 cents, or 4.1%. (MORE) DOW JONES NEWS 03-22-01