Micron had posted on their website that Elpida is now part of Micron and the date was shown to be July 31.It has been taken down now.There is a seeking alpha article with the details.
I think this clears the path of announcement by IMOS of their agreement with Micron.
But, how much does this really matter............the timing that is??? July 31 vs. Aug 31? One month more ownership but as the purchase is known, does the timing really matter that much?
Is MU going to be more affected by the reversal of fortunes in the memory business? Not long ago, people were talking about memory shortages and very good prices. Now, they are talking price deceases and a slowdown. I don't know what to factor in and thus confused.
Then, you have the SAC (Stephan A Cohen) sale of MU shares and perhaps even options further depressing the stock. And, as Wall Street knows this, the drop seems even more severe.
So, how to play all of this? I would like to hear from MU at their conference call but that is probably too late to wait and take a position. The article makes only a smaller reference to the guidance Elpida gave the bankruptcy court. But, how will Wall Street model this and what will really happen?
My gut feeling is to sell puts and get paid for nothing..............or perhaps get MU even cheaper if it falls and gets put to me. I may lose out on a bigger run...........but right now that seems a bit risky............but much less risky than it was a few days ago.
I am similarily confused about IMOS and when to time my adds (only smaller position at $17.20). Good thing I have my HIMX to keep me happy.
Ok. Have never found imos to be a good buy above $17/share. It has been a good buy around $8 - $10.50/share through the middle of March. The bottom of this downturn should give us a good idea of to what price the current floor of imos has risen.