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

To: DJBEINO who wrote (42324)	1/16/1999 7:10:00 PM
From: Skeeter Bug	Respond to of 53903

>>The average selling price of Micron's top memory chip product, the 64 Meg SDRAM, increased 8 percent in the first quarter of this year. In the same time, total chip production rose 10 percent, while the production cost remained unchanged.<< chip production, ie, revenues in ambiguous language, were up 10% while their lead product is up 8%,. looks like 20% growth isn't gonna happen as they are essentially still flat with last q. seems micron has jumped on board the korean production reduction strategy w/o telling anybody. costs CAN'T drop much until they increase output. they are in a tight, tight situation. essentially, 100% of txn has been taken off line, korea is at 70 production capability, if that, and pricing is barely moving up. this plan appears to be able to enable mu to make a few pennies per share. however, IT WILL NOT ALLOW them to make BIG money. mu chooses short term stock manipulation vs long term cost reduction. i think the doj ought to look into this potential collusion amongst dram mfrs.

To: DJBEINO who wrote (42324)	1/16/1999 7:22:00 PM
From: Skeeter Bug	Respond to of 53903

>>Micron says it did right thing with Lehi plant << dj, this is like a drunk driver saying he did the right thing by calling the police and turning himself in for running over a couple pedestrian and killing thems. since i'm not sure you understand the analogy, basically mu was totally inept at predicting the dram market (drunk) and chose to build lehi to the tune of $1 billion (drive). the market turned (hit pedestrians and killed them) and so they haulted lehi implementation (turned himself in). this total blunder has caused mu to lose $100s of millions in interest they will no longer be able to recover. it FORCED mu to leverage its balance sheet w/ over a billion dollars in debt and issue millions of shares. yes, mu did the right thing. after figuratively drinking, driving and running over pedestrians, they did the RIGHT THING and called the police to turn themselves in for manslaughter. what real smart folks to DO THE RIGHT THING like this. NOT! i've long said mu acts like their investors are stupid. sad thing is, i can't really say their approach is wrong...