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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: DavidG who wrote (24916)	12/9/1997 4:51:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

david, finally some analyis that makes sense ;-)

To: DavidG who wrote (24916)	12/9/1997 12:07:00 PM
From: ratan lal	Read Replies (1) \| Respond to of 53903

Full text of trading-ideas.com Micron Technology (MU, 25.19) - SHORT it appears that the falling DRAM prices over the past few weeks is likely to have a negative impact on MU's earnings for the November quarter. At the same time, MU has failed to reduce cost in fiscal Q1 than prior quarters. Analysts are now looking for MU's operating income to be slightly above break-even. The average selling price (ASP) for 16Mb DRAMs for 1QFY98 will probably be $4.50, well below previous estimates of $5.50. Management has indicated that they are concerned about the current DRAM pricing situation. The current spot price for the 16Mb DRAM is $3.50 and could fall further due to excess capacity. Based on continued weakness of DRAM prices, we feel that shares of MU have limited upside from current level. and may pull back towards $20 over the next few weeks. We would short MU at current level with a near term price object of $22. MU has resistance through $27. ratan