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

To: phbolton who wrote (46016)	5/27/1999 5:05:00 PM
From: SeaViewer	Read Replies (1) \| Respond to of 53903

Isn't aggressive pricing, at a loss, with the intent to drive out competition illegal? I hope MU is not the one being driven out. South Koreans and Japanese are deep pockets. NEC, Samsung, etc. can afford losing money in DRAM business, as they are more diversified.

To: phbolton who wrote (46016)	5/27/1999 5:22:00 PM
From: Fabeyes	Respond to of 53903

.... Street has been preoccupied with the rapid drop in DRAM prices and in past cycles, when DRAM prices dropped, it meant the worst she is dreaming. Lets talk about it next week,

To: phbolton who wrote (46016)	5/27/1999 6:21:00 PM
From: Thomas G. Busillo	Respond to of 53903

ph, whatever outlet put today's dateline on that story, it's a day late. cbs.marketwatch.com Sue Billat, analyst at BancBoston Robertson Stephens, said, "The semiconductor industry is in a lot better shape than people realize. I think the Street has been preoccupied with the rapid drop in DRAM prices and in past cycles, when DRAM prices dropped, it meant the worst. This time it doesn't." She said DRAM companies have entered into an aggressive pricing mode because they want to drive out the higher costs companies." DRAM maker Micron Technology (MU: news, msgs) shares gained 1 1/8 to 35 5/8. If they're successful in driving out "the higher costs companies", are we to assume there is no effect on orders for chip gear? If they're not successful, are we to assume there is no effect on profitability? There was another quote on CBSMArketwatch a few days ago that speaks to the above to a point. Commenting on the chip sector as a whole, LaFountain said, "If the order growth continues over the next nine months as it has over the last nine months, then we'll have equipment orders and shipments levels that would be too high. But, the equipment stocks in the last couple months have been priced as though those equipment orders would continue to grow. So something doesn't fit here." "There's no way you can have equipment demand continue to grow at these levels without at some point having a negative effect on the recovery of the semiconductor cycle," he added. Tad, I respectfully disagree with that last statement. There is a way you can have equipment demand continue to grow w/o having a negative effect on the semiconductor cycle... ...and reduced commitment to a product category making up a significant portion of worldwide chip gear revenues have minimal effect on chip gear co's... ...you can work at BBRS! <g> Dow Jones has comments coming out of Merrill's Osha as feuling the gains: May 27, 1999 Dow Jones Newswires DJ Micron Tech Up 10% On Optimism DRAM Prices Firming NEW YORK -- Micron Technology Inc. (MU) shares rose 9.5% Thursday on optimism that DRAM chip prices are beginning to firm, analysts said. Joe Osha, an analyst at Merrill Lynch & Co., said there was talk in the market that Micron was helped by a preliminary ruling Monday by the Department of Commerce intended to stanch alleged dumping by Taiwanese chip companies. The analyst said any impact from the ruling on Micron is "psychological" for now. Then again, couldn't it possibly be that MU is finished whatever last minute inventory clearing they may have been doing at the end of their quarter and there may be some anticipation for a let-up in pricing-pressure because of that? Good trading, Tom

To: phbolton who wrote (46016)	5/27/1999 6:23:00 PM
From: John Graybill	Respond to of 53903

Isn't aggressive pricing, at a loss, with the intent to drive out competition illegal? Good one! I think it's probably your turn to call the Feds. :-)

To: phbolton who wrote (46016)	5/27/1999 8:32:00 PM
From: DJBEINO	Respond to of 53903

27-May-99 12:00:24 Positive comments regarding the near-term direction of the DRAM market from analysts at both Goldman Sachs and ABN Amro have overpowered the negative effects of dissenting remarks about the DRAM market from BT Alex Brown. Micron has gained $3 1/4 to trade at $38 7/8. Big Money is behind today's rise with about 55% of all volume related to block trades. A sell super message recently appeared at $39, capping the stock's rise in the short-term. Given this morning's upside momentum, it would be surprising if this single block offer from a seller proved strong enough to reverse the stock's run. Watch for signs that the firm has more stock to sell, indicating a bout of profit taking is in store for MU, as well as for signs that buyers have tired - throughout the morning, all sell offers were countered with multiple bids on I-Watch.