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

To: Sunny Jim who wrote (2762)	12/31/1997 8:22:00 PM
From: jgercke	Read Replies (2) \| Respond to of 4074

To my knowledge, the sale of Micron Custom Manufacturing Services (MCMS) for +/- 270mm has nothing to do with the cancellation of the arrangement with CMC Industries. MCMS does not have anything to do with the assembly of PC's, but is " a contract manufacturer specializing in the design, assembly and testing of custom complex printed circuit boards, memory modules and system level products," to quote from MUEI's 10K. MUEI's own workers have been assembling desktop units but "The Company's Transport notebook PC systems are currently assembled by third-party manufacturers," to quote the 10K again. Presumably one such third party was CMC Industries. The news was significant enough for them for their stock to fall 40% today. MUEI does have a new production facility coming on line in 1998 in Nampa, Idaho, which may have something to do with this move. I couldn't disagree more with the comment " that the pieces of the puzzle don't fit very well." MUEI is streamlining its organization and divesting businesses unrelated to PC operations, consistent not only with successful execution of their BTO model but also with dressing up for sale.

To: Sunny Jim who wrote (2762)	1/5/1998 2:28:00 AM
From: Lee Martin	Read Replies (1) \| Respond to of 4074

Jim, I hear ya ! I've had several questions about this co. like 1. Why have all the other contract manufacturers like JBIL, SANM, etc. been kicking butt for the past year or two while MUEI's unit has been sucking ? 2. Why have all the other boxmakers (DELL, CPQ, IBM, HWP etc.) been kicking butt for the past couple of years while MUEI has been sucking ? The only answer I've been able to come up with is lack of proper management. I've listened to Mikey Dell, Eckardt Pfeiffer, and Joe Daltoso talk, and I can tell you based on my own subjective opinion that the later isn't even close to being able to play in the same league with the other two. Unfortunately for me, I only looked at the great products, stock price, PE based on projected earnings, est. 3-5 year growth rate etc. and determined that the stock was cheap at 16.5. So I bought 5k shares. Oops! Now the projected earnings have evaporated along with the stock price. I wish I had done my homework better and checked out the management team at this co. I've learned my lesson. IMHO since this co. can't compete (top line is growing only because they're giving away their products which doesn't help earnings) the only hope for this dog is a buyout. Why might somebody want this co. ? 1. entry into direct channel 2. great products 3. great people (except for management) 4. one less competitor ( I admit calling MUEI a competitor is a stretch) 5. if you assume a management change can fix this co. then stock is definitely cheap. Try calling Bill at MUEI IR at 800-214-6671 ext. 83900 with your questions. Please post results here. Also don't believe everything IR tells you because they (like management) just don't have a clue most of the time.(ie: Bill told me consensus est. was .05 and he thought they had a pretty good chance of meeting it. A week or so later they posted .01) Oops! Regards, Lee