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: phbolton who wrote (38656)	9/18/1998 4:12:00 PM
From: Skeeter Bug	Respond to of 53903

phb, isn't it easy to lather up the bulls? it amazes me. "we are now losing $100 million cash flow per q instead of last q's $200 million" and the bulls talk about a bullish environment.

To: phbolton who wrote (38656)	9/18/1998 4:47:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 53903

It's not the level it is the direction! This is classic economics 101 when a business becomes unprofitable many of the marginal players exit the business or consolidate leaving the stronger players to make a lot of money due to reduced competition and cyclical increase in demand. Micron is very leveraged to even minor change in DRAM prices.

To: phbolton who wrote (38656)	9/18/1998 10:07:00 PM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Experts Hoping For Chip-Market Rebound As Prices Have Stabilized NEW YORK -(Dow Jones)- The downturn in the semiconductor market, which has suffered from overproduction, may be bottoming out, analysts said at an industry gathering in San Francisco Friday. Memory-chip contract prices have risen to between $8 and $10 in recent weeks, according to Micron Technology Inc. officials. A few weeks ago, those prices were in the low- to mid- $7 range. Spot prices - which fluctuate on a daily basis, as opposed to contract prices, which are negotiated for a specific time period - have been strong for a couple of months. "It's been the most stable since pricing started heading down at the end of 1995," said Josephthal & Co. analyst Larry Borgman. Memory chip prices had plunged as much as 80% over the past year because of a glut in supplies and the Asian economic turmoil. Prices for certain types of dynamic random access memory, or DRAM, chips have fallen to as low as $1.30. Some of the world's largest manufacturers in South Korea and Japan have scaled back or halted production in an effort to stabilize prices. But analysts said demand for DRAMs is benefitting from seasonality as well as the fact that greater quantities of memory are being used in personal computers. Micron (MU) has run out of 64-megabyte DRAMs because of strong demand, said BancBoston Robertson Stephens Inc. analyst Dan Niles. He also said he believes that earnings estimates should rise. Micron is expected to post a loss of $1.23 a share in fiscal 1998, compared with earnings of $1.53 in fiscal 1997. The company is forecast to post a loss of 49 cents in 1999. For an industrywide recovery to take place, analysts say the communications industry must continue its rollout of new telecommunications equipment, such as digital wireless handsets, which have been selling briskly, and semiconductor-based networking system software.