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To: Chas who wrote (37382)	8/13/1998 12:37:00 AM
From: Dr. Evil	Read Replies (1) \| Respond to of 53903

To the Evil Masses... The 64M DRAM market is in it's early stages of market demand. There are still a good number of 16M parts around. Dr. Evil believes that this tends to buffer pricing in the 64M market. Observers of the 1M to 4M transition witnessed the same phenomenon. 4M DRAM prices dropped rapidly until 1M supply dried up. 4M prices eventually firmed allowing low-cost producers such as MU to tally 200% margins above fully loaded costs. The bottom line was, AND IS, that there just weren't as many die around. The 4M market cruised along steadily, the predominant industry wafer size 6", the industry DPW yield between 200 and 300DPW. Does anyone find it interesting that we are entering a similar period with the predominant wafer size 200mm, 8", and the industry typical yield between 175 and 250DPW? Are there more fabs today? Clearly, yes. Will MU attain the 200% margins that led them to the building of the Lehi fab? Probably not. But, 150% margin isn't bad in any manufacturing endeavor. This is attainable, near term. These are the market dynamics that will drive the stock price higher. As Mr. Bigglesworth predicted, MU will hit $45 by year end, probably sooner! Dr. Evil

To: Chas who wrote (37382)	8/13/1998 12:44:00 AM
From: TREND1	Read Replies (1) \| Respond to of 53903

Chas (1) Thanks for the FA report on MU. (2) DHH-DLL TA look at MU (3) Today's action resulted in a DHH2 which closes yesterday's DLL5 (4) So MU is currently in neutral. (5) For tomorrow MU would have to trade above 36 1/2 for a DHH5 buy signal. (6) For tomorrow MU would have to trade below 30 1/4 for a DLL5 sell signal. (7) Note: This 36 1/2 high is just as important as the Feb 1998 high. (8) Back in Feb 1998 MU took 6 days to test the high. (9) Today was day 3 since the 36 1/2 high. (10) Hal says the probabilities are high that MU will fail in test of the 36 1/2 high. (11) So what do we do ??? (12) MU trades above 36 1/2 and MU is off and running. (13) MU trades below 30 1/4 and MU is on it's way down to who knows what ? Maybe 20-21 area. Larry Dudash

To: Chas who wrote (37382)	8/13/1998 8:44:00 AM
From: DavidG	Read Replies (1) \| Respond to of 53903

Chas, As I said early yesterday morning I expected a move up to 33. When MU went over 34 I could not resist shorting it. I am still short this morning and will look to take some profits as it approaches 30. Any rallies I will continue to short. I expect a retest of 26-28 then a strong move back up to retest 36. The Montgomery report was very bullish and MU therefore may not go below 30. Longer term I expect MU to trend higher so after some testing of the lows I will be buying on dips more then shorting on rallies, which I have been doing lately. The bears who refuse to open their eyes to MU's new fundamentals are in for some serious losses in the nearterm as MU closes on the TXN fabs. MU is a different company with this acquisition, and will be larger and yet leaner, and more efficient with a better focus on their markets and products, and will definitely be the #1 DRAM manufacturer with the lowest cost products. Many Asians are leaving the DRAM business for good reasons, they see the writing on the walls. The foundry business may be the profitable business for them over DRAM. I may sound like a bull but in reality I trade both sides and have much more of a reason to be unbiased. The nonsense on this thread about MU going to the teens or single digits shows how out of touch with reality the "forever bears" are. One should not fall in love with a stock for fear of getting burned, but the inverse is also true. Good Luck Trading DavidG