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To: DavidG who wrote (31477)3/31/1998 1:06:00 PM
From: Amjad  Read Replies (1) | Respond to of 53903
 
Can Momentum Carry MU into Safe Territory:
I noticed recently that several large companies are phasing-out DRAM production (mostly by the end 2000); Considering this, and the 1 billion that MU can sacrifice between now and 2000, would MU be in safe territory then?

My opinion is yes, however, MU would be worth 1 billion less by then, thats approximately $4/share, and investors would loose -say 15%/year- on earnings we'd come to expect, thats another $8 by the year 2000. This makes MU a $17 stock.

The company is trying to diversify, but so are other companies that are well positioned! Is this a safe investment to assume favorable conditions by the year 2000?