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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Thomas G. Busillo who wrote (42156)	1/11/1999 9:20:00 PM
From: MileHigh	Respond to of 53903

Thank you! You are much more eloquent than I am. MileHigh

To: Thomas G. Busillo who wrote (42156)	1/11/1999 10:09:00 PM
From: PAinvestor	Read Replies (1) \| Respond to of 53903

Hi Thomas. I agree with your points. Ideally, I'd like to get a lawyer in to have a look at the agreement, but even to my untrained eye, there are so many escape clauses and contingencies that MU could quite easily escape any quantitative requirements without too much explanation to INTC. It seems almost designed to be that way. Not to mention that the day the agreement came out MU stated that it will use the cash infusion to improve the TXN facilities. Intel's Barrett said in a statement at that time "Our goal in making this equity investment [in Micron] is ensuring adequate supply of memory components". I'm sure that both were privy to the agreement prior to these statements. I have no problem in accepting that some of the money will be used by MU to accelerate development and production of RDRAM, but nowhere has Intel stated that money cannot be used for other non-RDRAM purposes. All capex by MU is designed to support the development and supply of next generation memory products. MU decides what the mix will be. As such MU will need to spend $1bn on chip shrinkage as it shifts the Idaho fab to 0.18 micron and probably some $1bn more to integrate TXN facilities to lower design rules. That leaves very little to spend on RDRAM development specifically. Overall, the investment is designed to assist MU in becoming a lower cost and higher volume producer of all chips - not just Rambus. I believe that INTC and MU agree that the current priorities are the points outlined above. Further, the agreement gives MU the flexibility to choose what the priorities are. I also think that INTC is worried about an overall shortage in DRAM.

To: Thomas G. Busillo who wrote (42156)	1/11/1999 10:24:00 PM
From: DavidG	Read Replies (4) \| Respond to of 53903

Tom, There is definitely an orchestrated effort to distort the facts related to MU's competition to manipulate the MU stock upward. Just like it was falsely reported about Samsung not being able to meet the memory demand and MU will probably get the rejected business... NOW.. it is even false about Fujitsu pulling out of the DRAM business. ebns.com Now you know I am positive on MU looking forward but this news being reported lately is a very calculated attempt by many to bring MU to an internet-like bubble and then burst it right after all their shorts are in place. I think it is getting close b/c MU retreats as fast as it goes up except for late this afternoon. IMO this time the bears got caught off guard and a short squeeze ensued. My guess is within the next few days MU is in for a big fall. DavidG