MU - Micron Technology - Page 2

supplier to i-phone


09:14 ET Micron: Settlement impact: $0.10 one-time charge, and iPhone exposure- Amtech (MU) 14.07 :Amtech says to put the $80 mln settlement in context $80 mln is 41% of last quarters earnings of $0.25 or put another way $0.10 a share. The firm says this is by no means the end of the price fixing cases as the state case and consumer case remain active. The firm believes the image sensor in the iPhone are likely from Micron as they have in the past had a strong relationship with Apple (AAPL) for their P.C camera sensors. The firm says even if iPhone units are above the projected 3 mln units/quarter it would contribute $420 mln/year so should MU be sole source which the firm does not believe to be the case for N.A.N.D it would be 6.4% of their present FY07 revenue estimate or 5% of their FY08 numbers. The firm believes it is more likely less than half that amount and only becomes significant should the N.A.N.D content increase more than NAND ASP's decline while units more than double projected volumes.

Micon reported bullish earnings yesterday.

The stock got a pop in A/H trading.

Their memory products increased 35% from last year.

They experiences a net loss of $52 million for 2nd quarter of 07. This was due in large part to higher cost fo goods.

Theey remian bullish on Tech deamnd for the rest of 07.

Lets see how the stock performs today.

I like the stock both in the short term and long term.

The CEO(Appleton) hasbeen able to re-structure the company and believe that they will boost their earnings nubr next time around. The are currently in the transitional period.

MU is a good tech play.

Just to let you know Strazzini said hes opening a short here today, last night on Fast Money. I forget the reason, but I thought you should know that before opening a long.

I didnt know. Thanks for the heads up.

I am not planning to buy it just yet but I think that it is a good long term hold.

*I found the recap, here it is

CHIPPING AWAY:
The headline: Micron (MU) Drops After Posting Quarterly Loss On Memory Chip Weakness
The word: Tim Strazzini says MU’s earning report was complete nonsense and thinks this is a terrific time to short this stock. And, he adds, get shorter Advanced Micro Devices (AMD). In the chip space Tim recommends investors stay long SanDisk Corp. (SNDK), STMicroelectronics (STM) and Broadcom (BDCM).

be careful
Goldman Sachs downgrades Micron (MU 12.07) to Sell from Neutral

MU - Micron Tech. Blackstone, Goldman Sachs to Acquire Micron Technology?

Micron Technology, Inc. engages in the manufacture and marketing of semiconductor devices worldwide. Its products include a series of dynamic random access memory products, which provide data storage and retrieval. The company also offers NAND flash memory products, which are electrically re-writeable, non-volatile semiconductor devices that retain memory content when power is turned off; and complementary metal-oxide semiconductor image sensors that capture and process images into pictures or video for various consumer and industrial applications. Its products are used in a range of electronic applications, including personal computers, workstations, network servers, and mobile phones; consumer applications, such as flash memory cards, USB storage devices, digital still cameras, and MP3 players, as well as in automotive applications. The company offers its products to original equipment manufacturers through direct sales force, independent sales representatives, distributors, and its Web-based customer direct sales division. It has a joint venture, IM Flash Technologies, LLC, with Intel Corp. to develop and manufacture NAND flash memory products; a joint venture, TECH Semiconductor Singapore Pte., Ltd., with the Singapore Economic Development Board, Canon, Inc., and Hewlett-Packard Company to manufacture memory products in Singapore; and a joint venture, MP Mask Technology Center, LLC, with Photronics, Inc. to produce photomasks for advanced next generation semiconductors. Micron Technology was founded in 1978 and is headquartered in Boise, Idaho.


Shares Outstanding6: 756.36M
Float: 705.68M
% Held by Insiders4: 5.34%
% Held by Institutions4: 71.20%

I see a boost in these stocks from the iphone. Like the info i got from an article below it could spur a demand and also spur higher prices.
Indirectly, Gauna also expects SanDisk and Micron Technology (NYSE: MU) to benefit. Both companies make NAND flash memory chips, and analysts expect that the iPhone will spur demand for NAND flash memory.

Monthly Chart.
( RSI shooting for new highs, looking to close above the 10 ma for the month on nice volume compared to previous months shows accumulation, and reversal)



Daily chart

You can see increasing volume in the recent months, 200 ma trending down and faster ones trending up. I think if you start accumulating shares around this area you will be good by end of month.RSI showing uptrend since march.

Looking good

nice close today. followed by the mid day upgrade.

Micron Tech Upgraded On Improving Memory-Chip Prices
1:04 PM ET - Dow Jones News
By Matt Andrejczak Jefferies & Co. on Tuesday upgraded struggling memory chipmaker Micron Technology Inc. (MU), citing improving prices for so-called DRAM memory and NAND flash chips used in PCs and other portable electronics.
Micron shares rose 27 cents, or 2%, to $13.69 in midday trading on the New York Stock Exchange, adding to its more than 10% gain over the past two months.
Analyst John Lau of Jefferies & Co. boosted Micron to buy from hold and lifted his stock-price target to $17 from $12. The more bullish outlook on Micron comes as the company is anticipated to cut its workforce and capital expenditures as it bids to become profitable again.
For the period ended May 31, Micron lost $225 million, or 29 cents a share, amid sharp declines in DRAM memory chip prices that hurt its gross profit margin. The company generates about 50% of its sales from DRAM processors that are widely used in PCs.
"In the face of a harsh pricing environment, Micron is transforming into a formidable competitor," Lau wrote in a research note. "We feel that the optimal window for a buying opportunity is ahead of the Micron analyst day."
The Boise, Idaho, company will update investors this Thursday, with analysts expecting more details about the specific number of job cuts and the overall cost savings from its expense-cutting moves.
Chief Executive Steve Appleton, Chief Financial Officer Bill Stover and other top executives will make presentations.
What also may help Micron is an expected round of PC-chip price cuts from Intel Corp. (INTC), which may help stoke PC demand ahead of the back-to-school and holiday selling seasons, Lau added. He expects Intel to cut prices on its high-end Core 2 Due microprocessors by around 40% from current list prices July 22.
-Matt Andrejczak; 415-439-6400; AskNewswires@dowjones.com

> Dow Jones Newswires
07-10-07 1304ET
Copyright (c) 2007 Dow Jones & Company, Inc.

doing good so far.

never seen anything about being Iphone supplier? Where did you find it or you are just speculating?

A bullish note from an analyst estimating that Apple (Nasdaq: AAPL) can sell 45 million iPhones in 2009 boosted the stock of the iPod and computer maker Thursday, but it didn't seem to do much for shares of possible suppliers for the highly anticipated gadget.

The estimate "may seem like a bold prediction," wrote Piper Jaffray analyst Gene Munster in a note to investors. However, he added "a number in this area is not as far of a reach as some may think."


What's Inside?
Apple stock was flying high, but shares of companies such as Marvell Technology Group and Broadcom (Nasdaq: BRCM) , both mentioned in the past by analysts as likely suppliers of iPhone components, were mixed.

Apple keeps mum on its suppliers, and until the gadget goes on sale June 29 and is dissected, the companies involved will be the subject of heavy speculation.

Marvell makes integrated circuits used in mobile phones and hard disk drives. Last month, UBS analyst Alex Gauna upgraded the stock, saying the company will likely benefit from iPhone and iPod sales in the second half of this year. On Thursday, Gauna said the company will likely be involved in the iPhone's WiFi function, and Broadcom in its multi-touch screen.

Marvell's shares rose 9 US cents to $15.92 in afternoon trading.

Likely Suppliers Not as Hot
U.S.-traded shares of Germany's Infineon Technologies, another possible supplier, inched 14 cents lower to $15.20. Gauna said the company will likely be involved in the iPhone's radio frequency capabilities.

Indirectly, Gauna also expects SanDisk and Micron Technology (NYSE: MU) to benefit. Both companies make NAND flash memory chips, and analysts expect that the iPhone will spur demand for NAND flash memory.
South Korea's Samsung Electronics , the world's largest memory chip maker, already supplies NAND chips for the iPod. The electronics company is also a possible supplier for the iPhone.

SanDisk shares fell 59 cents to $43.09, and shares of Micron fell 25 cents, or 2 percent, to $11.99.

Shares of Broadcom, whose chips are used in the iPod and in cell phones, fell 52 cents to $30.28.

Moving up nicely these past days alot of accumulation. Monthly breakout. Look at the charts. Nice money making here.

Looking for a break out on my MU stock. Semiconducter is getting money right now. Also chart wise first close above 10 ma

i guess no one is making money with me on this sucker. weeeeeeeeeeee

SOME STUFF THAT I DUG UP.

Blackstone, Goldman Sachs to Acquire Micron Technology?
Posted on Jul 18th, 2007 with stocks: MU

Greg Wilder (StockRumors) submits: In January 2007 we wrote an article entitled Micron Technology: Takeover Target For Private Equity?. Now, five months later we analyze further rumors on Micron Technology (MU).

A Divisive Stock

Micron develops memory, and has some specialization in the Flash memory business. Over the past month, several financial firms have upgraded MU based on DRAM pricing improvement. During the past month, UBS and Avian have both come out with very positive notes on MU related to pricing. On the other hand, Deutsche Bank came out with a negative note on MU in late March citing possible memory operation losses and the downside risk to consensus estimates. In early April there were several other downgrades and upgrades on MU.
As we can see, there has been significant division in opinions of MU.

Micron (MU $12.11) Takeover Rumors

At the same time, however, takeover (and more specifically LBO) rumors have circulated on the company. Over the past few months Blackstone has been the rumored bidder. Option activity for MU has soared.

Recent call buying in MU suggests that people "in-the-know" could be positioning themselves ahead of such an announcement.

Since January the market cap of MU has dropped almost 20%, from $11B to $9B. This drop has created a prime opportunity for an acquisition or leveraged buyout to occur.



Blackstone as a Buyer

Recent speculation has put Blackstone Group (BX) as the buyer of MU. Most recently the offer is rumored to be at $16 per share.

The Idaho Statesman recently reported on 5-26-07 that:

The idea that Blackstone would buy a semiconductor company isn't unprecedented.

Last December Blackstone led a consortium of private equity funds in a $17.6 billion buyout of Austin-based Freescale Semiconductor. The buyout was for $40 a share, which was a 36 percent premium over the company's then-current price.

A leveraged buyout by Blackstone is certainly possible, especially at the current pricing of MU.

Further Analysis of a Goldman Sachs LBO

As of December 31, 2006, Goldman Sachs Asset Management held 50,186,150 shares of Micron stock. (See SEC Filing) Rumors were circulating that GS was leading the leveraged buyout efforts. However, in early April GS downgraded MU to sell and cut the price target to $10 from $12 stating that:

By [the calendar second quarter] we estimate Micron will have lost as much in the first two quarters of the current downturn as it earned in the recent upturn... The market appears excited about improving DRAM prices after Micron called a bottom... post a few days of stable DRAM spot prices. We believe this situation is untenable, as our bottom-up supply/demand analysis shows significantly excess DRAM supply throughout 2007 driven in large part by the transition of NAND capacity to DRAM production which won't come online until [the second half]. While we expect NAND pricing to improve, Micron is likely to continue to generate losses in NAND given its poor cost structure and DRAM sales still drive the majority of revenues.

It is always possible that GS has sold their stake in MU. To me it would be silly to downgrade a stock that they hold so much of unless they are looking to lower the price for their own leveraged buyout of MU, or unless they had sold their position, which would effectively remove themselves from being a buyer.

While a takeover is still possible from companies like Intel (INTC) - who currently has joint ventures with MU - it seems that a leveraged buyout is more likely yet. Certainly recent call option activity suggests that some positive announcement is imminent.

Disclosure: none

Well I am in this... have been for quite a while... they just layed off 1100 people from their Boise location.. Would like to see it back in the 18.00 range!

yep hope it happens soon

taking a nice dive today