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

To: TREND1 who wrote (27123)	1/25/1998 11:35:00 AM
From: DavidG	Respond to of 53903

Larry, Is MU making money if their cost of production is $2.50 - $3.00 ? I tend to believe that this is very real and possible... even though others have a difficult time understanding this. One good reason for accepting this as fact is that $3.00 production costs, for 16mb chips, were being used prior to MU announcing completion of all their 16mb fabs being upgraded to .25micron. Now that they are there, this further cost reduction is real. Another problem I am seeing on this thread, and I mentioned in my post to MB, is semantics. Too many people are getting hung up on the meaning of costs. I contend that only production costs, as documented in most commentaries, is the only meaningful term that we should use. I know Skeeter and Earlie mean well but there insistance on using some Net or gross cost terms just isn't consistant with any analyst or company document. At least production cost has meaning to everyone and by adding on SGA, R&D as well as other expenses one can make a valiant effort at EPS or net profit between companies. I can tell you are reading all the documents that are coming across this thread as well as elsewhere and we seemed to be in full agreement on most of these latest breaking fundamentals. I would also say that DJBeino is really doing an outstanding job in identifying all the news sources out there to keep us informed. I spend most of my time now just reading his posts to keep up with MU. Thanks DJ. DavidG