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Technology Stocks : Micron Electronics (MUEI) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (2177)	10/31/1997 9:41:00 PM
From: Yakov Lurye	Respond to of 4074

Michael, In principle, you are right and each stock should trade on its own merits. My point is simply that 1)MUEI is not strictly a boxmaking operation - they have some DRAM-related business which may or may not be affected by DRAM glut, therefore one should not apply boxmakers' PEs to this stock without caveats; 2)because of their partial exposure to DRAMs (or because of general ignorance as you seem to think), their stock price is positively correlated with MU (DRAM)prices. At the moment, this is hurting MUEI, but in the future it may help. I am sure that their PC making operation is excellent - otherwise I wouldn't consider this stock. This reduces the downside risk, the upside will be greatly enhanced if by April/June the DRAM demand exceeds supply. My timing in buying into this stock was not too good (should've buy April calls instead), but I still hope to end up on the plus side in 6 months or earlier. Regards, Y.