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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (84629)	3/23/2001 12:03:22 PM
From: Earlie	Read Replies (2) \| Respond to of 436258

Joel: I am becoming increasingly interested in the MU situation. A few facts: - according to their "conference call", demand is picking up in the PC world....... but of course we learn today (what has been known for some time, but not released publicly) that MUEI is getting OUT of this improving business scene. (g) - Revenues held up but profits didn't. Profits are minuscule (at best). Of course the whole investment world should line up to buy the stock of a company that sells at many times revenues, especially in an imploding end-market environment. And I need some help. My calculator doesn't produce enough digits to register the PE. Oh, I forgot. ANY PE is appropriate in a "growth" industry. (g) - The company is marginally profitable "on a pre tax basis". As one of our posters pointed out, profitability before taxes is also profitability post taxes, so why the convoluted comment? I mulled that over for a bit and if one combines that comment with the fact that the SEC is sniffing, it could suggest the need for a bit of restating of past earnings, especially if the SEC is interested in the company's accounting with respect to its sub. - Remember my comments about MU quietly trying to dump some big inventories up here a few months ago? Never did find out if it was a successful mission for them, but let's suppose it was. Pretty neat. MU sells the bulging, 'no bid" inventories to the sub for decent prices, then has the sub dump the inventories JUST BEFORE THE SUB CHANGES ITS BUSINESS and takes a big "one-time-only" writedown. Clever little sewer rats. - MU sees improvement in the SDram environment. Wow. Unspoken of course is the fact that the industry is experiencing an absolute black pit as far a pricing is concerned. Nice move with that little comment. Too bad the company didn't comment on current prices and how far away break even pricing is. - And then there are the unfortunate "captured" funds, a few of which earlier this year owned close to a quarter OF THE ISSUED STOCK. My oh my, what a predicament. They bought it all the way up to the $120s and then had to suffer the ugly slide back to $30. Now they have dug a defense line here, desperately trying to hold it up until at least quarter end. Good luck fellows, and keep an eye on your "loyal-to-the-group" confreres. The urge to slide quietly out the side door must be almost over-powering. (g) "Core" comes to mind. (g) Best, Earlie