MICRON GROSS MARGINS MAY BE PEAKING $MU $C

This post was just published on ZYX Buy Change Alert.

Micron (MU) is long from $21.77.  It is trading at $46.03 as of this writing.  MU makes DRAM and NAND memory chips.  It is one of the cheapest stocks trading at a P/E of about 4.

Gross margins on NAND memory chips may have already peaked.  There are indications that gross margins on DRAM may also be peaking.  If it turns out to be true, then the earnings estimates on Wall Street are too high.  This has happened before.  In the last cycle, when Wall Street earnings estimates started coming down, this stock was  hit really bad.

As we write this post, MU is changing its bullish tune at admitting that NAND price did decline. MU is presenting at a Citigroup ( C) conference.

For the time being, the buy zone remains suspended, the ‘Buy Now’ rating for those following the ‘Good Way’ is ‘NO.’  The target zone is also being suspended until more information is known.

Buyback

MU CFO has just said that at the present price level, buying MU stock is a good value.  MU has a major stock buyback plan in place.  This should provide a floor for the stock.

What To Do Now

At this time, it is a matter of personal preference.  Due to the huge stock buyback, for tracking purposes the stock will continue to be held.  The other reason to continue to hold the stock is that the sentiment can easily turn positive.  If the sentiment turns positive, without any significant change in fundamentals, the stock can easily run to the high $50s.

 

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

AMD BEAT AMAZON BUT NOW A SHOOTING STAR IS IN THE WAY $AMD $AMZN $NVDA $AMAT $INTC $SMH $SOXX $MU $LRCX $AVGO $IWM $QQQ $SPY $DJIA

For a long time Amazon has been a favorite of the momo (momentum) crowd in this momentum-driven stock market. Amazon AMZN  had ...

WEEKLY MARKET DIGEST: STOCKS, GOLD AND OIL MOVE ON POWELL SPEECH: SENTIMENT POSITIVE $DIA $GLD $QQQ $SLV $SPY $TBT $USO

  Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

INVESTORS SHOULD TRAIN THEIR SIGHTS ON HOW COHEN AND MANAFORT COULD AFFECT THE MIDTERM ELECTIONS $FB $AMD $SPY $AMZN $MSFT $CGC $NVDA $INTC $MU $CRON $TLRY

A key to success in investing is to think ahead. A big event coming up are the November midterm elections. Recent ...

THREE ‘TIEBREAKERS’ THAT WILL DETERMINE IF STOCK MARKET BULLS OR BEARS ARE RIGHT $TSLA $AMAT $NVDA $AAPL $AMZN $FB $MU $INTC $NFLX $MSFT $GOOG $WMT

The benchmark S&P 500 Index seems to be stuck under a certain level. I recently wrote: “This S&P 500 chart shows ...

WEEKLY MARKET DIGEST: KNOW THE TIEBREAKERS FOR THE STOCK MARKET, GOLD AND SILVER CRUSHED $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

THE GREATEST LEAP IN GRAPHICS FROM NVIDIA IN 12 YEARS BUT WHAT ABOUT THE STOCK $NVDA $AMD $INTC $SMH $MU

U.S. chip company Nvidia is making a bold claim that it has accomplished the greatest leap since the invention of ...

WEEKLY MARKET DIGEST: TRADE DEFICIT WITH CHINA HITS A RECORD BUT MEDIA AND MARKET IGNORING IT $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

ETF MADNESS, UPDATE ON JPMORGAN AND CITIGROUP AFTER EARNINGS $JPM $C

This post was just published on ZYX Buy Change Alert. ETF madness is on display.  In spite of good earnings from banks, bank ...

STOCK INVESTORS, THINK TWICE BEFORE IGNORING TRUMP’S TRADE RHETORIC — HE WANTS TO WIN $JPM $C $BAC $AMD $AAPL $NFLX $FB $AMZN $RUT $SPY

The momo (momentum) crowd followed the stock market higher from support to resistance, ignoring President Trump on the trade war. Now ...

SUSPENDING THE BUY ZONE ON MICRON $MU

This post was just published on ZYX Buy Change Alert. A Chinese court has blocked Micron (MU) from selling in China on a ...

HERE’S THE REAL TRUTH ABOUT MICRON EARNINGS $MU

This post was just published on ZYX Buy Change Alert. MU is long from $21.77.  It is trading at $60.26 as of this ...

WEEKLY MARKET DIGEST: GOOD OUTLOOK FROM BEIGE BOOK UNNERVES THE MOMO CROWD ON STOCKS $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

HERE’S THE GOOD NEWS BEING SENT BY THE FEAR INDEX $VXX $VIX $SPY $FB $AMZN $MU $AAPL $NFLX $IWM $QQQ $GOOG

Wall Street’s fear index is based on expectations of market volatility. Professionals use and trade this volatility in a variety ...

UPDATE ON JPMORGAN AND CITIGROUP AFTER EARNINGS $JPM $C

This post was just published on ZYX Buy Change Alert. Signal(s) to enter, add, reduce, exit, hold or change. JPMorgan (JPM) stock is long from $34.14.  ...

SIX GOOD REASONS FOR INVESTORS TO CONSIDER BUYING BANK STOCKS RIGHT NOW $BAC $JPM $C $WFC $AMZN $MU $FB $NFLX

Stock market volatility presents opportunities to buy stocks or ETFs on a dip in prices. Many investors have been focused on ...

DON’T PANIC OVER TRUMP’S MISSILE WARNING (BUT BE CONCERNED HE MIGHT FIRE MUELLER) $NFLX $FB $AMZN $MU $AAPL $GLD $GDX $SLV $GDXJ $SPY $QQQ $IWM

President Trump tweeted a warning to Russia about not shooting down U.S. missiles targeted at Syria. Chemical weapons were recently ...

BE CAREFUL, A NECESSARY ‘CLEANSING’ IN THE STOCK MARKET IS STILL UNDER WAY $SPY $MU $AMD $NVDA $TSLA $FB $AAPL $AMZN $NFLX $QQQ $GOOG $IWM

In my 30-plus years in the markets, one of the biggest mistakes I have seen investors make is to not ...

FOUR WAYS TO PROTECT YOUR INVESTMENTS AS THE STOCK MARKET SEESAWS $AMZN $FB $AAPL $NFLX $NVDA $MU $SH $PSQ $GLD $SLV $AMD $QID $SPY

Until recently, many investors got accustomed to the U.S. stock market only going up. But that was not normal. Now that ...

THREE NUMBERS SHOW THAT A TRADE WAR IS LESS LIKELY $BA $CAT $FB $AAPL $AMZN $GOOG $JPM $BAC $MU $SPY $QQQ $IWM

Three numbers show that a potential trade war between the U.S. and China, and possibly other countries, is less likely. ...

STOCK MARKET X-RAY AND WHAT TO DO WITH MICRON $MU $LRCX $WDC

This post was just published on ZYX Buy Change Alert. To see the stock market x-ray, please click here. Micron (MU) is long from ...

Follow

Get every new post delivered to your Inbox

Join other followers