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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (32658)	9/19/1998 10:30:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Lee, I found this one funny as MU never admitted that they were ever receiving less than $8 for 64 Mbit chips. You only hear about that very low contract price lever AFTER it has ticked up a little. Many companies tell half truths. Mu doesn't even tell 1/8 truths. Here is what they left out of the story: 1. MU makes many more 16 Mbit chips than 64 Mbit chips. They didn't mention any price pickup in that dying niche that is their current bread and butter chip. 2. $8 is about $1.25 below variable cost and about $2.50 below net cost per chip. The net cost will go up when they start paying interest on the TXN loan this quarter. The more chips they make, the more money they lose, the more cash they burn. 3. This is the back to school and Xmas season, so small hiccups in component prices happen just about every year at this time. They don't last. 4. This is all blue smoke and mirrors to help cover their disaster of an eps report due next week. Expect more misdirection plays and flat out lies from MU spokesmen and their wannabe touts in the brokerage industry. Also, expect the media braindead to repeat the lies and misdirections as indisputable facts. The Street.Com has already accepted it at face value. They said that MU was lucky and led a charmed life, when, in truth, MU just tells tall tales at the time they are likely to have the most impact on the slow-witted. You gotta love this co. for not telling the whole truth to the public and their owners no matter what market environment they are in. They are consistently scam artists. This type of flim-flam could give us another session with the easy money put profits. MB MB