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

To: Ramsey Su who wrote (31515)	4/1/1998 8:03:00 AM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

Ramsey, holding everything else constant, the more competitors scale back their commitment to these products, the better for MU down the line. However, this news in the short-term is sort of a drop in the bucket. They're scaling back over an extended period and their non-European facilities could possibly pick up the slack (I'm making the assumption that they're not running full-bore). This type of shakeout in the industry is overdue and healthy. Unfortunately, it takes time for some of the weaker players to capitulate, especially with the mindset that some of these companies bring to the arena. It would be great if the laggards stood up en masse and said "You know what? We shouldn't be making these products anymore. We're bleeding money. We're not as good as the competition where it counts. We don't see the return on the investments needed to stay competitive as being incredibly robust. There are other products we could be making that get us a better ROIC...We're gone..." IMHO, the shakeout hasn't been happening fast enough, but that's what happens when politics mucks up decision-making. Goood trading, Tom