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

To: psujr who wrote (31475)3/31/1998 12:06:00 PM
From: DavidG  Read Replies (1) | Respond to of 53903
 
JR,

No, it's like saying that your 200k mortgage puts you in serious trouble b/c you now have 200k in the bank, are losing 40k of that every three months, and have no other net positive income.

Your assumption is that the $200,000 just sits in the bank and accrues 0% interest. Not realistic. Usually the yield is slightly lower than the rate of the loan...i.e. 7% loan vs 5.5 - 6% savings...which is $2000 to $3000 per year not $40,000 per year you alluded to which equates to 20%.

My calculations also assume not putting the money to good use which might typically yield 10 - 15 % per year. Also does not assume other income and normal household expenses<g>

Micron is not in great shape b/c their income is limited by a price war...but certainly are not in as bad a position as some would like us to believe...now SEA is in trouble...hence the presence of INTEL.

I hope now you are beginning to realize how foolish the "forever bears" numbers really are and why they do not make money and can only afford out-of-the-money PUTS, which is a spiraling losing proposition that ultimately results in bankruptcy.:-)

Good Luck Trading

DavidG



To: psujr who wrote (31475)3/31/1998 9:08:00 PM
From: mike iles  Read Replies (1) | Respond to of 53903
 
Thanks psujr, I think David is like Einstein, has a degree in higher math but simple arithmetric is beyond him (g)

regards, Mike



To: psujr who wrote (31475)3/31/1998 10:37:00 PM
From: Skeeter Bug  Read Replies (1) | Respond to of 53903
 
ps, not to mention that there is nothing mu can do to stop the bleeding of money. the bottom line is that the asians may be reviewing mu's financial status in order to see how long they need to sell at a loss before mu goes under. then they raise prices b/c supply is reduced.


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