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To: put2rich who wrote (39307)	9/28/1998 10:23:00 PM
From: Bald Man from Mars	Read Replies (1) \| Respond to of 53903

the price is determined by how much people are willing to pay, it has nothing to do with how much it made or lost ...

To: put2rich who wrote (39307)	9/28/1998 11:38:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

Nippon Steel (5401) To Abandon Japanese Chip Production TOKYO (Nikkei)-Nippon Steel Corp. decided Monday to withdraw fully from domestic production of semiconductors, company sources said. To that end, the steelmaking giant will sell all the shares it holds in subsidiary Nippon Steel Semiconductor Corp. (6939) to the United Microelectronics Corp. (UMC) group, one of Taiwan's leading semiconductor makers, by the end of the year. Nippon Steel currently holds 30,560 shares of Nippon Steel Semiconductor, or 56% of the unit's stock outstanding. Nippon Steel appears to have reached an agreement with UMC under which the Taiwanese firm will also buy one of the subsidiary's two chip-production lines. Together, the shares and the line are expected to sell for an estimated 5 billion yen. After selling that line to UMC and the second line to another company, either foreign or domestic, Nippon Steel will pull out of chip production in Japan. In the current fiscal year through March 1999, Nippon Steel is expected to report an extraordinary loss of about 120 billion yen, mainly on the disposal of debts incurred by the subsidiary. As a result, the company will likely post a large net loss, not the 5-15 billion yen in net profit previously forecast. Nippon Steel entered the semiconductor market fully in 1993 by purchasing a Minebea Co. (6479) subsidiary. Since then, however, prices on dynamic random-access memory chips (DRAMs) have declined. Nippon Steel Semiconductor has sustained substantial losses since fiscal 1996 and had 7 billion yen of liabilities in excess of assets in the fiscal year ended March 31.

To: put2rich who wrote (39307)	9/29/1998 12:41:00 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 53903

I agree with you that the stock is not cheap. In fact, as far as I'm concerned, any stock with earnings yield less than the 5 year T-bill is not cheap (with very rare exceptions). But the price is determined on perception. If the market decides that by beating the estimates MU deserves to take off, I won't find that any more illogical than the multiples that it awards AMZN and will not fight it. If however MU ends the week lower, I will stay away from it until it either gets near its lows, or breaks 40. Between mid 20s and 30s, MU is too volatile for my kind of trading. But unless I come to believe differently, I will be on the long side of MU when I do trade it, because it looks to me they will be the last man standing when the dust settles. Sun Tzu