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To: eddie r gammon who wrote (31444)	3/30/1998 6:37:00 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 53903

>>Low prices for DRAM (dynamic random access memory chips) in recent years have slammed Samsung Electronics, which last week said its net profits for 1997 fell nearly 25 percent to 123.5 billion won ($89 million).<< my thesis proved. samsung is making money. mu is losing nearly a half billion a year at current rates. of course mu deserves a valuation several times more than samsung. why isn't samsung investing in mu? they aren't stupid!

To: eddie r gammon who wrote (31444)	3/31/1998 10:04:00 AM
From: John Graybill	Read Replies (1) \| Respond to of 53903

I wonder if one of the "local" companies INTC is talking to about future DRAM production is MU. MU's flash design group is practically across the street from INTC. No language problems, no shipping problems, no time-zone problems...

To: eddie r gammon who wrote (31444)	3/31/1998 10:10:00 AM
From: mike iles	Read Replies (2) \| Respond to of 53903

Eddie, Intel-Samsung makes sense to me ... Intel's got more cash than it knows what to do with. You got to wonder why MU isn't talking to Intel? Despite what the forever bulls say MU's financial position isn't quite as simple as saying they're sitting on $1 billion cash. Some weirdo conservative types subtract out debt when looking at a company's finances. In MU's case you've got $935 million cash and debt of $849M (this includes the convert) ... leaves net cash of $86M. Trouble is that MU doesn't own all that cash. MUEI's share is $309M (most of which they got from selling the contract mfg. business) and MU can't touch that for the semi business. So their real cash position is -$223M. Yes, forever bulls they're in the hole! I track this net cash number across quarters and last quarter it dropped by $182M which is the biggest drop I can recall in a quarter when they didn't spend much on plant and equipment. Where the cash went was losses from ops. and their continued buildup of inventory ($42M) and accounts receivable ($24M) ... strange that working capital requirements are going up when their business is shrinking, usually it's the opposite. Unless memory prices stage a DRAMatic recovery these guys are going to have to address their financial/operating problems. They can't go on hemmorhaging cash at this rate. regards Mike