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

To: Kathleen capps who wrote (30964)	3/21/1998 12:12:00 PM
From: Ted The Technician	Read Replies (2) \| Respond to of 53903

Kathleen, Thanks for your guidance. >>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. With this assumption, I calculate the "true equity" of MU (after MU sells all of MUEI) to be: =MU stated equity - MUEI stated equity + 64% of MUEI =$2874M - $393M + 64% * 96M shr * $11/shr =$3157M "True Book Value" would be: =$3157M / 212M MU shrs =$14.9/shr This True Book Value would likely be less if MU actually sells all of MUEI assuming that MUEI would be worth less without MU's support. >>but after doing that for 18 months and loosing money on MU all the time, I finally gave up that particular obsession Don't give it all up, it'll probably help one of these days. Fundamentals help me set the "floor" or "value" of a stock. It also helps me understand whether the company is a sound investment. The expert investor needs to consider all factors that influence the price of a stock. The price of a stock is influenced by people who are really value, momentum, or technical analysts (any other types?). One can see this by reading the various postings to this board. If one indicator is not working, chances are that another indicator is. This is because there might be more of one type of player than another type at a particular time. I've been most successful using value and charting analysis to buy low & sell high. I've been least successful shorting - likely because it is difficult to predict how far up momentum players are willing to bid up the prices (e.g., Yahoo). There are many factors influencing MU's price right now: the price of DRAMS (keeps the price from rising significantly), fundamentals (losses will keep the price from rising significantly), and charting (keeps the price within a channel). Anyhow, thanks again for your help. Ted The Technician