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To: TREND1 who wrote (26962)	1/22/1998 10:52:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

10:44 [MU] MICRON TECH CEO: IF MARKET WORSENS, COMPANY COULD CUT WORKFORCE

To: TREND1 who wrote (26962)	1/22/1998 1:04:00 PM
From: Richard Russell	Respond to of 53903

Larry, Very good explanation. Hind sight is 20/20. If in fact one is to concur with the csfb analysis of the dram situation and it did hold true. How would it impact mu's bottom line? Does mu have any chance in 98 of doing as well as 97s dismal performance? In 94 when the future was looking incredible great for mu it had a net income of 400.5 M and profit margin of almost 25%, in 97 the net income was only 352 M at a profit margin of only 10%. In all likely hood even in the best case scenario mu will possible breakeven or have a marginal profit for 98. No mention was made of the fact that alot of the cut back in 16 is in order to ramp up 64 into full production. No mention is made of mus ability and capacity to make this transition when as far as I know they are well behind the competition. And even if mu does keep up with the competition the profitability of this next "cycle" seems to be in doubt. My question is where is the VALUE in mu to make it a 30 dollar stock? IMO earnings, dram prices, anal-ysis (fumbelmental & technical), etc. are all incidental to the price of this stock. It is a trading sardine batted about by the big boys in order to generate $. One must be able to identify which way the strongest forces are moving and trade with the flow. RR