Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DavidG who wrote (34913)	6/14/1998 11:53:00 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 53903

those numbers are more important than anything it is called magnitude of move and i was right in that you didn't know they were that different by looking at the cheesy si charts ;-) even so, lack of money is the answer to your question. mu is almost out of gas. in the middle of the sahara desert. small losses don't matter much to companies with lots of cash (one could argue this was mu before last q's disaster). after this q mu will have large losses (and getting larger) and a a cash level that will raise eyebrows (and getting drastically smaller). sept's q is looking like even larger losses and then there will be very little free cash available. losses getting bigger, inventories getting bigger (losses just not booked as such yet), and cash getting drastically smaller ought to sober up the most drunk of all wall sweeters. once the money is gone... who's going to lend a company money with billions in debt, lots interest payments, and no cash in the middle of a horrible worldwide dram glut? also expect a credit downgrade this q... to junk status... ;-) my bet is only jr simplot and he might just throw the towel in b/c he know that demand for dram remaining strong is meaningless. supply is crushing it. he;s not dumb enough to through good money after bad, imho. maybe, though. either way, the shareholders get reamed. oh, and did i mention that 78 tons of inventory that mu refuses to sell at MASSIVE LOSSES and the fact it has been growing 50% per q for quite some time? doesn't look too positive to me. on the grander scheme, mu has just gone through the most prosperous period in their history and look where it got them. they are now much worse off. with good times like this, who needs bad times ;-) of course, wall sweeters aren't the analytical types. too much herd mentality. i say the herd is now running down. all my fido investments are in the mmf. i can't believe they were so inept. but, hey, the greater fool game may just continue for a while. then again, it might not...