I would seriously considering selling now take some profit, then start buying back in phases on pull backs. I learned a valuable lesson last year holding out for $37 on MU, when it hit, didn't take $20K profit. Instead, I waited & followed the hype always saying it should be $40. It's then it's pulled back to $30 and I'm stuck waiting for a long climb back up. My two cents.
Below taken from the meeting helps me understand better, or at least not be as concerned about the semi sector being cyclical and/or historically driven by cyclical supply & demand.
"First and foremost we have to set the Company out for success to understand that we’re not just making chips for a big market that’s going to be trading chips on pricing on a daily basis. Now we’re engaging with customers one to one as you can see in that video on what their needs are and how we can configure these applications and technologies from Micron to empower their systems and solutions."
"Cycle time reduction, inventory management, customer delivery performance, these type of metrics that we run our business on day-to-day, the team did a fantastic job, but we have a lot of room to grow, because as you might imagine, as we think about changing from a commodity business to end-to-end customer solutions one-to-one, that puts a whole set of new demands at our supply chain and how we serve our customers "
Kg2931 (Long & Strong 2K shrs MU @ $24.92 held patiently since 3/5/14)
"a dramatic improvement in revenue, in operating income in net income, and it showed up in cash flow, much of which we put back to work in the business, investing in our capital, equipment and people, but also finding a lot of cash to return to the shareholder through repurchase of convertible debt. "
"But many in business wondering why it’s trading at a 8:1 PE ratio and of course the answer to that is behaving -- looking forward to the declaration of the dividend which will push you up to the proper valuation of your Company. Can you tell us anything that you have planned for the future in that regard?
Mark Durcan - CEO
Thanks. So I appreciate the support. The way we’ve used our cash and our free cash flow over the last year, a lot of it has been used to return value to the shareholders through repurchase of convertible bonds that had the potential as a stock price continues to rise to dilute future earnings. So, we want to take care of some of that first and I think over time at some point in the future -- I have no timeline for this at all and I don’t believe our board has a timeline for this today, we will look at what other ways to return value to the shareholders might be. But I think the most important thing for us to do today is to continue to restructure the balance sheet relative to those convertible bonds and maybe move more of our debt over time into high yield straight debt. And then as we think about the future and we have continued, sustained high performance, as we believe we’ve done over the last couple of years, I think over time investors will look at this Company and begin to value us more appropriately. If at some point in the future, we think the dividend is the best way to return capital to shareholders, we’ll certainly consider that as well, but that’s not likely to happen this year."
More semis up than down. But MU has run up this week. Redeemed itself at least...
Fri, Jan 23, 2015, 2:14pm EST
^SOX 681.13 Down 1.36 Down 0.20%
MU 30.75 Down 0.14 Down 0.47%
INTC 36.71 Down 0.20 Down 0.53%
SWKS 81.09 Up 1.76 Up 2.50%
NXPI 80.14 Up 1.08 Up 1.37%
AMBA 57.26 Down 1.15 Down 2.16%
AADI 0.0015 0.00 0.00%
MCHP 46.52 Down 0.02 Up 0.02%
MXIM 33.74 Up 0.73 Up 2.20%
TSEM 15.07 Up 0.59 Up 4.14%
IDTI 18.91 Up 0.22 Up 1.18%
FCS 16.20 Up 0.05 Up 0.06%
MSCC 27.78 Up 1.38 Up 5.45%
CSRE 51.58 Down 0.06 Down 0.46%
SNDK 79.79 Up 0.89 Up 1.13%
MPWR 47.96 Up 0.95 Up 1.87%
MTSI 34.27 Up 2.39 Up 7.50%
^DJI 17,775.67 Down 38.31 Down 0.22%
^GSPC 2,060.41 Down 2.74 Down 0.13%
^IXIC 4,765.32 Up 14.92 Up 0.31%
^RUT 1,190.44 Up 0.07 Up 0.01%
Kg2931 (Long & Strong 2K shrs MU @ $24.92 held patiently since 3/5/14)
I haven't been following RBY daily. During the past month, has RBY typically made daily moves this extreme?
kg2931 (10KK shrs RBY @ $ 5.54 Shr ($55,407) held Long since 4/11/2011)
Thanks everybody for answers. Now I get it! So, this Taser is meant for the high end security market, not the masses. And thanks for the tip on the Muvi Veho. I've got that bookmarked at Amazon now. Not fun getting old...
Agree. I've made the not selling MU at 35 mistake at least 3 times now but after having done so nothing makes more sense than just holding for the next slow drag up. Unless the story is compellingly different soon, will sell on the next 35. Good luck to both of us on that. kg
"BOISE, Idaho, Jan. 13, 2015 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (MU), will host its annual meeting of shareholders at 9 a.m. MST on Thursday, Jan. 22 at its Boise, Idaho"
Doubt the meeting is over yet. No news release yet that I can see.
"Mu trades on future expectations of supply/demand balance and the perception of that at the moment is that more capacity will be coming "
Yes, but that perception is for two years out if realized at all. I would think that "future expectations of supply/demand balance" 2 years off are not effecting MU's current and near term sp that much. I just don't see the institutions selling off or not holding long n strong for that matter. We do need to be paying attn as we get closer to what Samsung actually does.
I'm just holding into this next 2015 gradual rise. Way I see it right now, MU's got no where to go but gradually up unitl it reaches our 34 - 35.
Thanks. I'm an old foggie and not much for tech gadgets. From your answer it sounds like the Taser device and SW service is meant more for the high end security market, not for retail. If this is the case, I wonder why police depts don't buy the more affordable products like the "Veho for a great mini clip-on video camera for less than $50.00"? In other words, I'm just wondering if smaller police depts can't just get similar/sufficient functionality from the less expensive retail market?
Makes sense Codi. This is consistent with most of the MU SA writers past year. Oligopoly appears to still be working. Besides, as everyone keeps saying, even if Samsung builds more production, it's not supposed to come about for two more years.
Would be nice to have a camera on person at times that would accomplish the same thing meant to do for the police. Also, with a time, date stamp and audio component. Haven't googled yet. Just wondering - anybody off hand know if this exists yet and cost?
Hi Nncy, wow, what a reversal! Today SMCI now down 8.93%! Not sure what that's about. I haven't been following SMCI lately. Don't own any. On the sidelines past couple weeks. I do still hold my 2K shrs of MU and 3K shrs TASR though. Just patiently holding & hoping, ha! Nncy, If you're invested in SMCI today, hope this isn't catching you by surprise. kg
Not exactly, but I haven't checked defn's either. MU's figures are pretty close together: Profit Margin (ttm): 21.85%
Operating Margin (ttm): 22.56%
That's how I see it too but I haven't paid much attn to comparing margins on stocks. Just trying to learn.
Don't know anymore, don't care, cause the pillaging is done n long gone. Old news. New ownership now. Totally different co now going forward. Navaine Jain was the main culprit. Pillaged the INSP, left and then started a new co practically next door! Biggest #$%$ of the decade in Seattle at that time.
pink, I don't have a feel for a good vs bad margin. Isn't it relative to the rest of the statistics? Yahoo Key Stats has MU's margin as: "Profit Margin (ttm): 21.85%". How would you rate that? Exc, Good, Fair, not worth owning, etc?
chic, Yahoo Key Stats lists MU at "PEG Ratio (5 yr expected)1: 0.53". Is this what you're talking about, or a 1Yr?