Re: [CANSLIM] Deflation?? "M"???

From: Kent Norman <kent_norman@yahoo.com>
Subject: Re: [CANSLIM] Deflation?? "M"???
Date: Wed, 18 Dec 2002 08:10:31 -0800 (PST)

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Tom

I see it as Management failing to plan. 

DDR has been out for quite a while. It is common for computer parts
prices to crater as they go obsolete. What I wonder is what Micron
management was seeing several years ago when others were ramping up for
DDR?

Regards
Kent Norman


- --- Tom Worley <stkguru@bellsouth.net> wrote:
> 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


=====
There are 3 kinds of people in the world. Those who can count and those who can't.

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