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To: Lucretius who wrote (3572)	9/30/1998 11:57:00 PM
From: The Ox	Read Replies (1) \| Respond to of 14427

Thought you'd like this on MU and NTAP: from exchange2000.com Micron Technology, Inc.(MU/NYSE)$31.63 FY Revenues (mil) EPS Analyst: A.A. LaFountain, (212)705-0317 8/00E: $4654 $(0.03) Sell. 8/99E: $3419/2805 $(1.10)/(1.06) ú 4Q98 results above our estimate and Street consensus, with DRAM revenue strength offsetting still-weak PC revenues. Lowered losses aided by expense control and accrual reversal in PCs and firmer DRAM pricing. ú Modifying F99 EPS estimate only modestly, although pending TI transaction would penalize EPS by an additional $1.00-1.20. Instituting F2000 estimate with profitability attained in second half of fiscal year. Shares appear overvalued given earnings prospects. ú Using a long-term revenue growth rate of 17% as a multiple on estimated FQ3 EPS of $3.39 and discounting that future value at 20% gives a current value of $20.77 and a 12 month value of $25. The potential decline to this value justifies the Sell rating. Network Appliance, Inc.(NTAP/OTC)$56.13 FY Revenues (mil) EPS Analyst: Glenn Hanus, (212)705-0361 4/00E: $395.2 $1.21 Buy. 4/99E: $272.6 $0.86 ú NTAP continues to be on track to at least meet our revenue and EPS estimate of $64.3 M and $0.20 for FQ2 ending October 31st. Product mix toward high end systems should help support revenues and ASPs but slightly lower gross margins sequentially. ú New generation products are being well received and should account for 50% of shipments in FQ2. Fibre channel will account for 80% of unit shipments by the end of FQ2. ú NTAP's salesforce should reach about 110 in F99, up from 70 at the end of F98, below its stated goal of 140. We are comfortable that this salesforce growth should enable NTAP to meet or slightly exceed our estimates as salesforce productivity is improving and ASPs are trending higher.