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

To: Kathleen capps who wrote (35561)	6/22/1998 12:05:00 PM
From: Knighty Tin	Respond to of 53903

Kathleen, Yes, MU does have another $500 million in shelf registration, but who would be dumb enough to buy it now (except for TXN, of course) <G>? They pretty much used up the supply of idiots with deep pockets when they suckered them into the convertible play. The recent losses, cash decline and increased debt won't help their credit rating any. I would rate them C+, though the agencies will probably lower slowly to a single B. Well, since they will be making losses instead of earnings, the estimates for losses should be increased by 10% per share. The company admitted on the Conference Call that they are technically in default on their bank loans, but that the banks understand and are not about to throw them into bankruptcy. MU is not alone in this. It happens often in business and does not necessarily mean that the co. is about to close its doors. But MU has been in technical default several times in the past couple of years, and I think the banks are probably whistling past the graveyard. MB