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

To: Thomas G. Busillo who wrote (43420)	3/2/1999 11:50:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 53903

Great Moments in Journalism: Barron's Reiterates MU Despite Apparent Inability to Differentiate Between MU and MUEI interactive.wsj.com Micron's Shares Head South Portfolio manager Mark Herskovitz [manager of the Dreyfus Technology Fund quoted earlier in the piece] is also bullish on Micron Technology, a company we recently wrote about (see Weekday Trader, "Throwing the Chips Out With the Bath Water," February 18). Nothing against Mr. Herskovitz, but - so what? Congratulations, you found a money manager who likes MU. At 54 1/4 it's nearly a third off its high of 79 1/2 -- and about eight points lower than when we wrote about it nearly two weeks ago. Funny how the writer fails to mention that "its high of 79 1/2" [sic] represented a quadrupling of the stock in the span of 5 months. Although our original premise -- that demand for chips should hold steady if PC unit shipments remained strong -- still appears to be true, Uh, ma'am, in case you hadn't noticed, your "premise" is a conditional. Now unless you are miraculously going to prove that PC unit shipments remain strong in spite of recent news out of the sector, specifically, CPQ and MUEI, I'd caution you against using any words that might suggest that you are actually engaging in what we call "logical reasoning". And considering that the first part of the piece amounted to nothing more than rounding up money managers who believe in buying PC-related stocks on the dips, I reiterate my caution. ...yesterday the company warned that its earnings would fall below expectations. And Goldman Sachs removed Micron from its prestigious U.S. Recommended List and cut its rating to Market Outperformer. You know it's funny. I've been under the impression that it was Micron Electronics (MUEI) that warned, not Micron Technology (MU). And if you think that's a Jesuitical distinction, let me ask you this - do you think MU's IR is going to be happy that you are reporting that Micron Technology warned? Now granted, Barron's wasn't the only outlet to make this mistake. biz.yahoo.com Tuesday March 2, 1:10 pm Eastern Time Intel, Micron fall after analyst downgrade NEW YORK, March 2 (Reuters) - Shares of Intel Corp. (Nasdaq:INTC - news) and Micron Technology (NYSE:MU - news), a pair of leading chip makers, were lower early Tuesday afternoon amid fresh evidence of a broad slowdown in the personal computer industry. Micron Technology, which is majority owner of direct personal computer marketer Micron Electronics Inc. (Nasdaq:MUEI - news), warned Monday that its fiscal second-quarter net income and revenues would fall short of its first-quarter results because of slower PC sales. To their credit, a later article got it right. Here's a quick lesson in differentiating between a publicly-traded subsidiary and its publicly-traded majority owner. Get your notebook out. Module #1: They have different names. Example: "Micron Technology" "Micron Electronics" Did you see what happened there? Yes, the first word is the same, but the second is different. Module #2: They have different ticker symbols. Example: "MU" "MUEI" Did you see that? You might have noticed that we have the same sort of thing going on here in this case. The beginning is similar--the first two letters are exactly the same--but the end is different. Fun Exercise for Barron's Weekday Trader Reporter and Editor: Print this out and see if you can connect the dots. Use your favorite crayon color! Micron Electronics MU Micron Technology MUEI In a research note, Goldman analyst Frank Wang pointed to some pricing weakness "and a valuation which discounts strong 2000 earnings." His conclusion: "The stock has clearly moved substantially higher…and the risk/reward is not as positive…" You know, I can understand the MU/MUEI confusion (actually, I can't; I think it's unconscionable for a news organization to do that)... ...but how do you get Frank Wang out of Joe Moore? Isn't Joe Moore the Goldman analyst on MU? Dow Jones Newswires Micron Technology Falls 15% Following Goldman Downgrade Dow Jones Newswires No further information is available at this time. NEW YORK -- Micron Technology Inc.'s (MU) shares shed 15% Friday after Goldman Sachs & Co. downgraded its rating on the chip maker to market outperform and removed it from the recommended list. In a research note, Goldman Sachs analyst Joe Moore said that although Micron has strong near-term fundamentals and a substantial production upside that has resulted in lower costs, the company may encounter contract price reductions in the near-term. Moore explained that the potential decline in contract prices, which he expects to fall to about $9.00 from a little more than $9.25 per chip, is a "slight cloud on the horizon which causes us to take a slightly more cautious view in light of current valuation"... So, who is Frank Wang? Is he even the analyst on the hardware group? Isn't that Laura Conigliaro? But he still thinks Micron's fundamentals are strong, and the stock should do well in the long run. We're sticking to our story, too. Oh, it's a hell of a story. Sorry, I have no tolerance for people who have no respect for their profession. That piece is an abomination. Tom