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 : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (66743)	12/3/2014 5:20:27 PM
From: Donald Wennerstrom	1 Recommendation Recommended By Gottfried Read Replies (1) \| Respond to of 95622

The market is battling back from Monday's down day. After 3 days, the major indices all up in the black with the exception of the NASDAQ. IDCC was the only stock up on Monday. It is now up 3 days in a row, 0.9, 1.5 and 3.7 percent.

To: Donald Wennerstrom who wrote (66743)	12/3/2014 10:09:46 PM
From: bigchad	1 Recommendation Recommended By oldbeachlvr Read Replies (1) \| Respond to of 95622

Hi Don et al, On that note anyone listen to Micron's CEO at Credit Suisse conference today? I did. A few takeaways..... 1. Intel relationship very, very strong. Almost like they are married. I think obviously they are a good partner to have and frankly wouldn't be surprised to see a merger one day. With memory and CPU getting closer and closer together all the time, Intel may see Micron as a key strategic acquisition when Micron hits $70 or $80. That is my humble opinion of course;) 2. The CEO strongly alluded to the Inotera contract that strongly favors Inotera now will be renegotiated. He didn't outright say it but did say something along the lines of the agreement is strongly skewed towards Inotera and any reasonable partner would see that and be willing to make an agreement that would more evenly divide the benefits among the partners. 3. Strong demand drivers in 2015 and showing no signs of letting up. Enterprise memory growth in early innings, mobile still growing thanks to low to mid range as well as high end, and PC better than expected and even if it isn't growing or slows again, a much smaller part of the business and getting smaller all the time. 4. China is definitely trying to enter the semi space but Durcan thinks that memory is probably the hardest sector within chips for China to be successful due to IP, capital intensity, and the guys that are in it right now full time are already having a hell of a time right now given they are pushing up against the limits of the laws of physics. So while he definitely thinks they will try they probably won't be that successful anytime soon. 5. Micron is dead set focused on making money for shareholders so they are not going to stupidly spend money on too much build out and even if the expand they always have an eye on market conditions and can change the pace of their ramp up in production or even decide to change what they will use the capacity for based on market conditions. I have heard this several times before the last year or so, Micron is keenly focused on producing the most valuable bits with the highest profit margins. Durcan also argued that the competitors are just as focused and maybe even more so on profitability "for obvious reasons" whatever that means. Maybe he meant that Samsung is getting their asses kicked in smartphones at every level and if they don't make money in memory it will be a real problem. Or maybe he meant if Samsung produces too much it will only help its competitors while hurting its already struggling share price by incremently decreasing the price of its installed base of chips leading to decreasing profits. Yeah, I think that's what he meant. 6. There was a couple of other things in there, gotta listen to it again but rest assured it was all good. He didn't even talk about the weakening yen but that is just sweet icing on this very delicious cake. If Micron reports before year end I am predicting close to $50 by late December/early January. Frankly it should be there now..........