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

To: Ted The Technician who wrote (30963)	3/21/1998 2:05:00 AM
From: Kathleen capps	Read Replies (1) \| Respond to of 53903

Ted, Your assumptions on the accounting are correct. I used to go over the financials with a fine tooth comb, but after doing that for 18 months and loosing money on MU all the time, I finally gave up that particular obsession. So I can't comment on the accuracy of your numbers. However, MU's financials include 100 percent of MUEI's financials -- which means that on the surface, all the numbers are overstated (i.e. MU's sales should be the combined MU and MUEI sales less the sales between the companies). That's why when MU sold and additional 13 percent (or whatever) of MUEI last year, as long as they didn't drop below a minimum percentage, MU still showed combined earnings. MU will report cash, but you have to look at both sets of financials to see where the cash really is. You can take the MU financials, then back out MUEI's. Mike Iles and SB still monitor that closely. MU likes to confuse things by using many many wholely owned and partially owned subsidarys. Every time they have a new effort, they open a new sub -- personally I think it's just to confuse the books and make it impossible to get a handle on what's really happening. For example, with the Lehi plant, the work was being performed by a Micron construction subsidiary. >>Yet another point, MU owns about $600M worth of MUEI stock. When added to MU's equity, MU's book value totals $13.5/shr. Does anyone know whether this logic is correct? or should I assume that MU's stated shareholders' equity already includes MUEI's shareholders' equity? Since MU is reporting a consolidated financial statement, the "value" of the MUEI stock doesn't matter. It's already included in MU's shareholder equity. Look for the entry that offsets MU's shareholder equity for outside interests. Hope this helps. Kathleen (on the 12 step program for MU addicts)