[CANSLIM] Deflation?? "M"???

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: [CANSLIM] Deflation?? "M"???
Date: Wed, 18 Dec 2002 00:03:22 -0500
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from Reuters tonight (and likely to weigh on NASDAQ on Wednesday) =
(emphasis and coloring my own):
BOISE, Idaho, Dec 17 (Reuters) - Micron Technology Inc. (NYSE:MU - =
News), the No. 2 maker of computer memory chips, on Tuesday reported a =
wider fiscal first quarter net loss, saying the average selling prices =
for its products dropped about 12 percent from the prior quarter.

Nah, I am not worried about deflation, of course not, who are you =
kidding? Folks, that's a SEQUENTIAL quarterly drop in pricing, not even =
year over year.

Other comments:

Micron wrote down $91 million in inventory

Micron had $873 million in cash and marketable securities at the end of =
the quarter.

The high proportion of older products Micron sold as opposed to newer, =
faster memory chips was a surprise and accounted for the lower overall =
selling prices

In addition, Micron had trouble ramping up production on a newer =
technology at one of its facilities

from Charles Boucher, analyst at Bear Stearns:

"The only silver lining is that pricing did improve during the quarter =
on a number of their products and they should be able to hold it =
relatively flat going into the current quarter,"

"I would expect a combination of slowing PC demand heading into 2003" =
and other companies boosting production of the newer, faster memory =
chips to cause prices to fall

Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
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<DIV><FONT face=3DArial>from Reuters tonight (and likely to weigh on =
NASDAQ on=20
Wednesday) (emphasis and coloring my own):</FONT></DIV>
<DIV>
<P><FONT face=3DArial>BOISE, Idaho, Dec 17 (Reuters) - Micron Technology =
Inc.=20
(NYSE:</FONT><A =
href=3D"http://finance.yahoo.com/q?s=3Dmu&amp;d=3Dt"><FONT=20
face=3DArial>MU</FONT></A><FONT face=3DArial> - </FONT><A=20
href=3D"http://biz.yahoo.com/n/m/mu.html"><FONT =
face=3DArial>News</FONT></A><FONT=20
face=3DArial>), the No. 2 maker of computer memory chips, on Tuesday =
reported a=20
wider fiscal first quarter net loss, <STRONG><FONT =
color=3D#ff0000>saying the=20
average selling prices for its products dropped about 12 percent from =
the prior=20
quarter.</FONT></STRONG></FONT></P>
<P><FONT face=3DArial>Nah, I am not worried about deflation, of course =
not, who=20
are you kidding? Folks, that's a SEQUENTIAL quarterly drop in pricing, =
not even=20
year over year.</FONT></P>
<P><FONT face=3DArial>Other comments:</FONT></P>
<P>Micron wrote down $91 million in inventory</P>
<P>Micron had $873 million in cash and marketable securities at the end =
of the=20
quarter.</P>
<P>The high proportion of older products Micron sold as opposed to =
newer, faster=20
memory chips was a surprise and accounted for the lower overall selling=20
prices</P>
<P>In addition, Micron had trouble ramping up production on a newer =
technology=20
at one of its facilities</P>
<P><FONT face=3DArial>from Charles Boucher, analyst at Bear =
Stearns:</FONT></P>
<P>"The only silver lining is that pricing did improve during the =
quarter on a=20
number of their products and they should be able to hold it relatively =
flat=20
going into the current quarter,"</P>
<P>"I would expect a combination of slowing PC demand heading into 2003" =
and=20
other companies boosting production of the newer, faster memory chips to =
cause=20
prices to fall</P></DIV>
<DIV><FONT face=3DArial>Tom Worley<BR></FONT><A=20
href=3D"mailto:stkguru@bellsouth.net"><FONT=20
face=3DArial>stkguru@bellsouth.net</FONT></A><BR><FONT face=3DArial>AIM: =

TexWorley</FONT></DIV></BODY></HTML>

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