Hynix had their chance. With MU pulling out, Hynix gets sold off in pieces. This will consolidate the industry and stabilize DRAM prices. This is a better long term result for MU. Ironic, Hynix was a dog of an acquisition that will now get served up buffet style!
Thank God tomorrow is Friday. The shorts won't want to hold their positions over the weekend. they have gotten a good drop in price on medium volume after huge volumes which signals a turn in pricing. Look for rational behavior next week as people realize that chip prices will increase because Hyniks is no longer a viable concern.
Only problem is the time it will take for Hynix to go down and the measures they will take to save it - like perhaps undercutting the price of chips and dumping on the market. That, my friend would not be good for Micron or the industry. Just look at when that happened a couple years ago for reference.
True. That's a good point. Hopefully, MU will proactively work with our government to prevent dumping of DRAMs below cost. MU has always led the anti-dumping efforts and the US has a vested interest in keeping its' only DRAM manufacturer above water. One thing I've always liked about MU is that they can make DRAMs cheaper than anyone so if the DRAM market tanks in the short term, MU will lose the least amount of money.