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

To: Bharat H. Barai who wrote (25462)	12/15/1997 10:35:00 PM
From: DavidG	Read Replies (1) \| Respond to of 53903

Bharat, I agree completely. DavidG

To: Bharat H. Barai who wrote (25462)	12/15/1997 10:46:00 PM
From: Earlie	Read Replies (3) \| Respond to of 53903

BHB: While there are other items in your commentary that one might query, the one that stands out is the comment that MU is the most cost efficient producer of Dram. Might you provide some justification for this point of view? I would also suggest that the Korean problems are not just Dram-related. Best, Earlie

To: Bharat H. Barai who wrote (25462)	12/15/1997 11:20:00 PM
From: Skeeter Bug	Respond to of 53903

>>Micron is the most cost efficient producer of DRAM, but Koreans have been under selling them at loss.<< bharat, please don't pass rumors (started by mu. they are, ofcourse a disinterested party, right?) as fact. i don't know that mu is the low cost producer. you don't know it. even mu doesn't know it. we all agree that mu is VERY competitive, though. good luck. >>As soon as the Korean Presidential Election is over on 18 Dec., Samsung, Hyundai and LG will be forced by IMF to adjust their prices to make profit. Now with their foreign debt being even higher and IMF dictating, they have no alternative but to raise prices and/or cut production. Do you think IMF and US taxpayers will keep on feeding them billions of dollars to continue their insane losing ventures? We all know how volatile memory prices are ! As soon as these measures are announced and Koreans are forced to use common business sense, memory prices will go up. The airlines learnt hard way, how not to cut each others' throats to make profit and good business. Airlines are doing excellent now, putting profits before "market share". I hope the Semiconductor industry and their lending banks learn their lessons from this Korean debacle. That would transform all of semis into consistent, reliable money making businesses.<< samsung has more money than mu. lg does too. toshiba does too. if those three are hurting then mu is toast. so, keeping a $4 billion fab sitting idle is good business sense? HA NOT! ;-) >>Give some credit to Micron! At these DRAM prices Koreans bankrupted the country, Micron made few pennies!<< yeah, dram bankrupted korea. give me a break. the imf will not micromanage pricing. as for 16 mb sdram, there will be no market when all the korean companies switch to 64 mb sdram. when will they switch? when 16 mb mticks up. can 64 mb producers make money while 16 mb producers lose money? YOU BETCHA. what? are you going to loan mu the $1 to $2 billion to keep up? >>Just as it was irrational in 1995 to take the stock price to 94, based on July 1995's DRAM price and project it to happily ever after, it is equally irrational to assign value to Micron, based on today's totally insane DRAM prices, courtesy of dumping by Koreans.<< bharat, on this we agree. however, we are nowhere near $0.00, fair value for current pricing. i can see mu trading in the $8-$13 range with no earnings based on the hope of the scenario that you outlined. jmho. see ya in the teens. eventually ;-)

To: Bharat H. Barai who wrote (25462)	12/16/1997 1:44:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 53903

Nice description. I might add that investors in US tech stocks efected by S. Korean's barbaric warlike competitive policy (victory at any cost - rape and pillage along the way and take no prisoners) should contact their congressmen and demand that if the U.S. politcal gadflies agree to bail out the bankrupt Koreans that they do not allow the country to be blackmailed into doing so. If Micron, or any other high tech company acted so irresponsibly in a quest to steal market share, the US government would be extremely unlikely to step in at the last moment to bail them out. We investors would be left with our empty brokerage accounts with no help from Uncle Sam. The fear tactics the Asian countries are using ie. "If our 20% of worldwide market consumption goes bankrupt it will pull down the economically civilized world's 80%, therefore you have no choice but to save our asses" should not be meakly kowtowed to. Let the majority of offending companies go bankrupt or be taken over for 10c on the dollar as has occured during shake-outs of U.S. companies such as Fairchild Semi in the 80s. They wanted to play at a high stakes cpaitalist game and they have lost, let them sell out to the highest bidder and let the US and japanese investment bankers eat crow. Write your congressmen and demand that U.S. taxpayers not be left holding the bag for the corrupt and ignorant policies of Asian countries.