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To: Amjad who wrote (31486)	3/31/1998 1:43:00 PM
From: DavidG	Respond to of 53903

Amjad, Your accounting analysis sounds very similar to someone elses work on this thread. Just curious to know whether you went to the same Accountant school.<g> You assume they spend the entire $1billion in the next year or two and never replenish any of that money. They have never done that in the past and not sure why you made that assumption. (I am not saying it is impossible but just that it is not realistic). Also, you penalize them for an additional 15% or $2 billion b/c they did not earn money and analysts are calling for a possible turnaround in 1999.(again not saying it will happen but you are overly pessimistic) My argument is... if they just tread water until the DRAM market picks up, then they should not have to expend the entire $1 billion and their stock price should not vary much from here...BUT... if DRAM companies reduce in size and number over the next year...than DRAM prices will rise, increasing MU's cash position, then also the stock price and book value will increase. DavidG