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

To: mike iles who wrote (34889)	6/15/1998 1:04:00 AM
From: Ed Beers	Respond to of 53903

Mike, > not a real buyer (no cash, stock is grotesquely overvalued)< Grotesquely overvalued stock is a good thing when it comes to making an aquisition. I think that the key problem here is that adding more capacity would require more capital investments going forward and, in todays pricing environment, not provide any additional cash flow to cover it. Beyond that, an existing shell (Lehi) makes a fab purchase much more difficult for Micron to justify since their incremental cost to complete Lehi is $600M less than other prospective buyers would have to pay for a new fab. Funny thing we haven't heard about other potential buyers..... Ed