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To: Carl R. who wrote (39491)10/1/1998 3:01:00 AM
From: Sun Tzu  Respond to of 53903
 
Carl, I'm gonna ask you the same thing I asked Skeeter; what is the burn rate for MU and how will it change after the deal with TI is closed. I still have a hard time believing they can spend as much money on their capex as they said they will. But perhaps you can explain it. I'm assuming that DRAM prices will stay the same for a quarter, drop by 20% for another quarter, and stabilize somewhere in between for the next 2~3 quarters. I'm also assuming that MU's ability to cut costs due to technology improvements is limited (i.e most of this has already been done). Can you give me the best, worst, and most likely scenarios?

Thanks in advance,
Sun Tzu



To: Carl R. who wrote (39491)10/1/1998 12:27:00 PM
From: Trey McAtee  Read Replies (2) | Respond to of 53903
 
carl--

i think the problem is statements like this:

>> Imagine a semi company with $1 billion in depreciation that makes $0 in
profit.<<

to me, this says that they make no money on operations...AND...have 1b in depr. at that point the depr doesnt matter since they arent going to pay taxes anyway. all they are doing is building loss carryforwards, which will only have value if they make money again.

good luck to all,
trey


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