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

To: ild who wrote (52801)	7/14/2001 11:38:33 AM
From: phbolton	Respond to of 53903

Bill Fleckenstein on MU: Micron Follies Lastly, to show how gullible everyone is, we have made no secret of our distaste for the price of Micron Technologies and the antics of the IR department there. Today,Micron filed to sell an offer of $450 million worth of warrants. I would like to point out that this is potentially one of the most dubious pieces of paper I have ever seen. It is the functional equivalent of Internet wampum from the last speculative go-round. It is a testimony to people's incredible willingness to speculate, I'm assuming, mostly with other people's money, judging by the terms I have heard for this deal. I don't want to state them all as fact. I have not seen a document yet. But this is a piece of paper that sounds like it will be precluded from trading on a regular basis due to certain restrictions. $450 million? We'll Lose More Than That This Quarter It will be interesting to see what kind of disclosure is in the document that the company is releasing, how truthful it will choose to be about the state of its business. Buying Micron at these prices with the warrants would be like buying a gold producer that was bleeding if gold was $150 instead of $260, and the stock price of the gold company was about three times higher than it is now. I guess it would be a little bit like buying warrants on Newmont Mining, if Newmont Mining was trading for about $50 instead of $19, and the price of gold was the aforementioned $150. Absolutely crazy, but looking at the ability to finance a company like Micron right here and now, and looking at corporate America's ability to sell stock options hand over fist while laying people off while blowing smoke about how things are about to get better makes it clear why corporate America does what it does. There's absolutely no penalty for making stuff up and, in fact, it is quite profitable. Look no further for why they do it. Everything that's going on now points to a top, not a bottom. People that talk about this being a bottom are absolutely clueless.