MU is long from $21.77. It is trading at $60.26 as of this writing. MU has preannounced earnings. There was not much of a surprise in the earnings. MU management repeated its prior stance that DRAM demand remains strong.
In our analysis there are lingering concerns about DRAM demand. In spite of the bullishness of MU management, these concerns are not fully resolved. This is keeping a lid on the stock price. The stock can significantly correct at the slightest sign of weakening DRAM demand.
Zones
For those following the ‘Good Way,’ the ‘Buy Now’ rating is a ‘NO.’