Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Glenn who wrote (2422)	11/21/1997 5:35:00 PM
From: LWolf	Respond to of 4074

So here's what the analysts are saying....... From WSJ Interactive Edition, Dow Jones Newswire 11/21/97 Micron Electronics Down 17% On 1Q Earnings Outlook By Janet Morrissey NEW YORK (Dow Jones)--News that Micron Electronics Inc. (MUEI) will miss analysts' estimates for its first quarter reflects lower prices, high inventories and competitive pressures in the personal computer marketplace, analysts said. The company's Friday morning announcement drove the shares down 2 1/4, or 16.2%, to 11 5/8 on Nasdaq volume of 4.9 million, compared with a daily average of 1.1 million. Dell Computer Corp.'s (DELL) entry into the consumer market, Compaq Computer Corp.'s (CPQ) adoption of a build-to-order strategy and Toshiba Corp.'s dominant position as a notebook supplier have all chipped away at Micron Electronics' competitive vantage point. "It's a supply-demand problem," said PaineWebber Inc. analyst Walter Winnitzki, where larger companies are elbowing their way into the notebook arena and scoring wins with brand-name models at cut-rate prices. "(Micron) doesn't have the same brand name recognition," said analyst Matthew Russo of Sands Brothers & Co. A Bear Stearns & Co. analyst concurred. "If you could pay the same money to buy a brand name, then who would you go with?" Micron Electronics said it expects to report "minimal" net income for the first quarter ending Nov. 27. Analysts surveyed by First Call had expected the company to post 22 cents a share, compared with 27 cents a year earlier. Despite its projected earnings shortfall, Micron Electronics expects a 30% sales increase, exceeding the sector's average 18% growth rate for the period. Hardest hit were the company's notebook sales. Analysts blame the projected earnings shortfall on Micron's poor projections and high inventories. ************ L. Wolf