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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: All Mtn Ski who wrote (3702)	8/15/1998 10:45:00 AM
From: Scotsman	Respond to of 4697

Some related news Micron Shares Up 9.8% As DRAM Prices Inch Back Up >MU By Christopher Grimes NEW YORK (Dow Jones)--Micron Technology Inc. (MU) shares soared 9.8% on optimism that the memory-chip business is finally beginning to show signs of recovery. Some analysts say prices for DRAMs, or dynamic random access memory chips, beginning to recover after a remarkable three-year decline. "Pricing continues to go up," said Dan Niles, an analyst at BancAmerica Robertson Stephens. He said prices on some memory chips are up 20% to 25% from a month ago. The market has been plagued by a vast oversupply of DRAMs, which has led prices to fall from $50 a chip three years ago to well below $2 this year. Micron is the last U.S.-based company still committed to the dynamic random access memory chip. It recently agreed to purchase Texas Instruments Inc.'s (TXN) DRAM business, and International Business Machines Corp. (IBM) has made no secret about its distaste for the highly cyclical market. DRAM manufacturers abroad are either exiting the business or idling plants, too. Earlier this month, Germany's Seimens AG said it would close a plant in England because of memory chip price declines. Michael Gumport, an analyst at Lehman Bros. Inc., said the price rebounds are happening faster than he expected. "The trend has been up and up faster," Gumport said. "There are more signs the industry is around a bottom." Gumport said demand for DRAMs slumped from March to May, but picked up in June. "We're ending the slowest part (of the year) now, and entering a seasonally stronger part of the year." Niles said Applied Materials Inc.'s (AMAT) third-quarter report Tuesday also was bullish for Micron Tech. Sales and orders for new chip equipment sank at Applied, meaning semiconductor companies are spending less to remain competitive, he said. "People are not spending more on DRAM capacity," he said. Micron stock couldn't open Wednesday morning because of an imbalance. When it did open, it went on a tear, gaining as much as 34 5/8. Micron shares were recently up 3, or 9.8%, to 33 5/8 on volume of 6 million shares, twice the daily average. It was a strong day for semiconductors in general, with the Philadelphia Semiconductor Sector Index up 2.85, or 1.1%.