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

To: Thomas G. Busillo who wrote (31328)	3/27/1998 3:55:00 AM
From: Kerry Phineas	Read Replies (1) \| Respond to of 53903

TB, of course the upgrades in January are masking something thats going on with MU. Maybe MU is paying all the investment bankers to auction off its non-essential organs, maybe the analysts are aiding a big customer in a mass exodus, who knows? I don't like repeating myself but MU is screwed from a "return on invested capital" (and all that crap) basis for a while and for a number of reasons; unless they have somewhat significant margins (which would equate with breakeven for Korean companies because of amortization schedule differences in an industry where cap exp's grow exponentially, etc) they won't generate enough money internally to meet their cap exp needs and will need to somehow either make public or private placements of sub's to get the cash(for a while). Micron is becoming the girl in high school who slept with the entire football team; it took advantage of a mediocre situation in '97 but didn't get much out of it except on a temporary basis. Granted, MU could pump out 16's when everyone else was trying to force crossover, and they did generate some cash in doing so, but nowhere near the billion dollar bills they'll need. (the private placement did much more; that was MU as a freshman sorority girl hanging around the frat houses: at least those guys aren't now washing dishes at Denny's. They now have her whacked on coke, but it'll be a while yet til she has to pay for it). Umm, hope this helps.