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To: mike iles who wrote (24557)	11/26/1997 3:41:00 PM
From: david jung	Read Replies (1) \| Respond to of 53903

Memory makers drive costs lower news.com David WallStreet Links: 100+ Investment Links members.tripod.com New mirror site: angelfire.com

To: mike iles who wrote (24557)	11/26/1997 6:45:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

Mike, in re: 1-4, I actually agree w/ your points. No, they didn't "make every right decision" or whatever term I used. I guess I was trying to say that there are some points in some industries where even if Firm A does a great job of making the right calls, the impact of the decisions of Firms B through G can put that firm in a quagmire no matter what happens. And yeah, not realizing the type of quagmire they could have been heading into - it does look like someone threw an airball on that one. There are firms out there that did either extricate themselves entirely or manage to diversify the earnings stream away from DRAM in a meaningful manner. And it is amazing that there were problems w/ the assembly/test process that weren't able to be more effectively addressed. And I agree, they could learn a few things about efficient use of capital. I missed Bipin's post, but I'll try and find it. My own "theory" is that somewhere in MU there are individuals who exert influence far beyond their competency and for whatever reasons have been allowed to do so. Who wanted Lehi? Who is really happy about having an ISP division serving Idaho and Washington State? Who's being stingy about making a conscious effort to work VERY aggresively with other firms in developing potential end markets for RFC? I'd find it hard to believe that somewhere in MU there's not someone who saw the writing on the wall way back, but no one listened hard enough. As far as them being "good guys" - in my book "good guys" don't hold little "coffee clatches" w/ their favorite analysts to parcel out the bad news; they suck it up and pre-announce. As far as the "dumping" goes, my question is - well, what do they expect the Samsung's of the world to do, stick their inventory in a big trash compactor? They're going to sell it. And as far as producing at a loss, well, if the choice is between losing $100 or losing $100+$X, I'd assume that a firm will do what it takes to lose as little as possible. As far as the IMF bailout goes, if the South Korean government wants the carrots they're going to have to agree to whack some of the dysfunctional aspects of their economy into shape with the stick. I guess that's what my post was more aimed at getting on the old soapbox about - capitalism works; easy-money, crony capitalism works or seems to work for a time, but then the chickens do come home to roost, and the firms (warts and all) that have been competing in a capitalist economy (warts and all as well) get hurt. So if we're going to send our taxdollars on an emergency surgery mission, let's correct as much of the problem as possible while the patient is open and let's not be satisfied with platitudes. Good trading, Tom