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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (27632)	12/22/2005 8:59:25 PM
From: sixty2nds	Read Replies (6) \| Respond to of 95616

08:58 MU Micron: Color on quarter (6.14 ) -Update- Deutsche Bank notes that MU reported F1Q06 revenues and EPS below their and Street estimates as oversupply of DRAM continued to pressure ASPs, but CIS, Flash, and Sp. DRAM enjoyed stable pricing. They say MU currently trades above mid-cycle P/B of 1.4x, and of global memory peers (1.3x), heading into a tough C1H06 pricing environment. CSFB says that as capitulation continues, build positions on weakness in 1H06. They expect estimates to begin pricing in the impact of DRAM over-supply and a pause in NAND flash growth following the quarter. While there is potential for further downside to consensus expectations in the coming seasonally slow period, they would begin to look for entry points in 1H06 on weakness. Goldman notes that MU continued its practice of not providing explicit guidance. However, they expect MU to generate losses over the next few quarters due to significant weakness in DRAM prices, as despite the co's diversification strategy, they believe commodity DRAM still dominates the P&L. They say MU is trading at a ~15% to 20% premium to its global DRAM peers on 2006 P/BV and P/S metrics.