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

To: gmccon who wrote (2515)	12/5/1997 1:43:00 PM
From: kenteen	Respond to of 4074

Earning to reported Dec. 15 after close per Briefing.com. First call mean estimate is 7 cents. Thanks for the post. I entered to win a Micon computer.

To: gmccon who wrote (2515)	12/5/1997 2:14:00 PM
From: Lee Martin	Read Replies (4) \| Respond to of 4074

To All: I talked to Bill in MUEI IR (800-214-6671 ask operator for IR dept.) and asked him if they are going to meet FC est. for the current Q when they release earnings on 15 Dec. He said the est. is for .05 and that he feels they will be able to meet the est. but emphasized that the official release states only that earnings will be "minimal". More important to me was their outlook going forward. I wanted to know if the inventory problems that caused the warning were being addressed and how long it would be before earnings get back on track. Bill said that MUEI was adopting the Dell model where suppliers retain possesion of product at warehouses or hubs located close to MUEI's facility for JIT delivery. The increased inventory turns resulting from this should help margins and eliminate the inventory problems which caused the latest warning. Their new ad campaign is going well, and their corporate business is expanding. They expect to begin shipping a sub-$1k PC in the next few months to take advantage of their position as the only direct channel supplier of sub $1k boxes. Top line revenue growth is doing fine. The problem is getting top line growth down to the bottom line (earnings growth). IMHO managment knows what their problems are and is making the right moves to fix them. How long it will take for earnings and the stock price to get back on track is anybody's guess. In the meantime one thing is certain, at a P/S of about .4 MUEI is CHEAP. With competitors like CPQ and DELL having problems expanding capacity and finding and training skilled workers, MUEI certainly appears to be a takeover candidate. The question is whether MU is willing to let MUEI go. I hope they are. Since MUEI at 10-11 is too cheap to sell, I guess I'll just have to sit back and wait for something good to happen. IMHO they are doing everything they can at MUEI to help the stock, and eventually their hard work will pay off. Regards, Lee