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

To: Patrick Hennessey who wrote (45570)	5/3/1999 9:53:00 PM
From: phbolton	Read Replies (3) \| Respond to of 53903

FWIW: Crucial Technology is now an underwriter for PBS's Car Talk.

To: Patrick Hennessey who wrote (45570)	5/4/1999 4:01:00 PM
From: John Graybill	Read Replies (3) \| Respond to of 53903

perhaps this is our stealth event: Micron Technology stock gained 3/4 to 38 3/4. In a PaineWebber research note, the analysts said [they were] lowering estimates on direct-sales PC maker Micron Electronics, of which Micron Technology owns 64 percent. PaineWebber said its new third-quarter outlook for Micron Electronics is 6 cents, compared with the First Call Corp. consensus of 10 cents a share. PaineWebber set a 12-month price target of $21.50 per share. Micron Electonics shares rose 1/8 to 10 1/4. cbs.marketwatch.com Let's pretend that people are taking this seriously. (Never mind that they lowered earnings estimates at the same time they doubled the 12-month price target.) There are roughly 100M shares of MUEI outstanding, and MU owns 64%, so call it 64M shares. Paine Webber says each share increases by $11 in another year, so that would be a $700M increase in MU's market cap, or roughly $2.80 a share. That's about the rise we've just seen. Unless we get something more relevant and specific very soon that enlightens us, I'm going to have to consider this the reason for the unusual activity. That said, we are supposed to believe that this (very dubious) one-year price increase prediction for MUEI has now been quietly and fully "discounted" in MU's price -- in three days. That spells "put-up job" in my book.