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.

Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (16505)	9/28/1998 7:27:00 PM
From: DanZ	Read Replies (1) \| Respond to of 53068

MUEI/MU. Ron, In addition to easily beating the First Call estimate, MU also beat the whisper number that called for them to lose 57 cents. MU closed at 32 1/2 and was trading at 33 7/8 after hours. I understand what you are saying about the loss, but the positive aspect to the story is that they were able to increase prices in the latter part of the quarter. Had they been able to raise prices earlier in the quarter, they would have reported an even smaller loss. A gradual improvement in earnings could be interpreted as a bottom in the business cycle and better fundamentals ahead. One thing that I found very positive in the MUEI report is that they increased gross margins from 16.8% to 22.2% year over year. That is a very big improvement. Just imagine how much money they will make when sales pick up, assuming they keep margins that high. MUEI closed the regular session at 16 15/16 and was trading between 17 1/2 and 17 3/4 after hours.