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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (10139)	12/3/2001 9:52:58 PM
From: orkrious	Respond to of 99280

It all depends on who is going to "eat" the huge debt that Hynix has accumulated. Welcome back, Zeev. here's what fleck said tonight about MU: And then, in the pigs-can-still-fly department, Micron was up about 5% in the hopes that it will be able to merge with Hynix. I'm sure there will be lots of stories bandied about regarding the number-one imagination-driven semiconductor stock. But I can't see how Micron is going to be able to hook up with Hynix, because who is going to swallow the $7 billion in debt? I don't see any way for any kind of a deal to get done, especially when one considers that Hynix was created by the past merger of Hyundai and LG Goldstar. So, if a merger were put together, I can't see how it could possibly be good news. Even if Micron were able to shut down a little bit of capacity, there would be all that debt to deal with. If they issued shares for the debt, there'd be that much more dilution. And at the end of the day, I don't believe that the Korean government is going to let them shut down any plants anyway. I guess it just goes to show that people are still willing to be gullible as long as we talk about something as seemingly exotic as DRAMs, the price of which has only done one thing since they've been invented, which is to collapse. In any case, stay tuned as we follow that bouncing ball.