not vested
Micron Technology (MU)
Micron Technology (NASDAQ:MU) has been a cheap stocks for awhile, but it’s bumping up against being properly valued.
It’s not an easy idea for some investors to get behind.
Micron beat the previous quarter’s estimates by more than 30% and looks as if it might be coming out of the chip glut cycle better than it entered it.
This is a cycle investors have seen over and over again, however, with the same end result every time. That is, producers will curtail production, abating supply and restoring pricing power.
Rivals Samsung Electronics (OTCMKTS:SSNLF) and SK Hynix, in fact, have already slowed their DRAM expansion plans, and Micron had undertaken a project to cut capital expenditures by more than $1 billion this year.
It could take a while for tempered production to restore DRAM prices, but trading at only 5.22 times this year’s projected per-share profits, MU stock is worth the wait. It has been every time before.
Source: Daily Trade Alert