Caught up with other stuff this week and missed my short target on MU. Oh well. Hit the 100 DMA on the weekly to the penny and pulled back nicely.
Aha,so heres the reason for the 8.79 spike today on very close to 60 million in volume. The demise of one company is Microns silver lining.
2nd UPDATE: Elpida Files For Bankruptcy Protection, Biggest Manufacturing Failure In Post-War Japan
By Juro Osawa and Shawn Schroter Of DOW JONES NEWSWIRES
I dunno. Guess I'll pick up some puts later. Thanks for the post or I wouldn't have noticed.
Go long MU - MASSIVE CALL BUYING / Lands deal with INTC.
In its post-earnings conference call, Micron's CFO told investors that Micron has a set profit margin "built into the [multi-year wafer supply] agreement" it's signed with Intel (Nasdaq: INTC ) . Micron didn't elaborate on exactly how much these wafers will cost Intel, or how profitable the contract will be for Micron -- but any profit at all would seem to be an improvement.
Meanwhile, Micron said it returned to cash profitability, at least, in Q2, generating positive free cash flow of $145 million. If we run-rate that number out through the next 12 months, it suggests that $580 million in positive annual FCF is a possibility, producing perhaps a 14 FCF valuation on the stock. At that level of profitability, Micron might eventually become worth buying. Then again, rival SanDisk (Nasdaq: SNDK
NEW YORK, NY -- (Marketwire) -- 06/07/12 -- After an impressive first quarter semiconductor stocks have slumped as a result of growing concerns of a global economic crisis. SPDR S&P Semiconductor ETF (XSD), which seeks to closely match the returns and characteristics of the S&P Semiconductor Select Industry Index, has fallen nearly 15 percent in the last 3 months. Five Star Equities examines the outlook for companies in the Semiconductor Industry and provides equity research on Micron Technology, Inc. (NASDAQ: MU) and SanDisk Corporation (NASDAQ: SNDK).
The Semiconductor Industry Association (SIA) recently announced that global semiconductor sales for the month of April increased 3.4 percent to $24.1 billion. The growth was in April was the largest month-over-month increase since May 2010, and the first time sales topped $24 billion in 2012.
"The outlook for the global semiconductor industry continues to be one of cautious optimism," said Brian Toohey, president & CEO, Semiconductor Industry Association. "We are beginning to see an encouraging trend of modest, sequential growth and we anticipate this trend will continue during the rest of this year, with stronger growth predicted for 2013 and beyond. But that optimism continues to be tempered by macroeconomic factors."
Micron Technology is one of the world's leading providers of advanced semiconductor solutions. The company last month announced development of its first fully functional DDR4 DRAM module. The company has begun sampling and has received feedback from major customers to support quick implementation for applications in 2013.
SanDisk Corporation, a global leader in flash memory storage solutions, today announced it is using the world's most advanced semiconductor manufacturing process to produce SanDisk's highest-performing embedded memory products. iNAND Extreme is now being built on SanDisk's 19 nanometer process technology to enable the large-capacity, high-performance embedded NAND flash memory products that are ideally suited for high-end tablets and smartphones.
It might be the time to start looking at MU once again.
Micron posts its 7th straight quarter loss,yet,its price is up 8 percent in pre-market trading,currently 9.80. There are also about 5 different upgrade this morning ranging from 9 to 15.
623,559 shares were just bought at 9.75