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So what ??? Buying a stock is not gambling ??? What if it dropped $10 after earning?
$1.40 is a small price to pay for a big pay out
If they keep reporting great numbers with more buy back
Not to forget a buy out/ partnership with tsinghua
Credit Suisse’s John Pitzer, who has an Outperform rating on Micron, nevertheless wonders if China is involved in a secret way, perhaps financing the deal:
Ongoing China investments within the industry do also make us wonder if there is a hidden element to the deal, and China could be involved in Debt or Equity financing of the deal. We view the acquisition as positive for MU, though company could have waited for more opportunistic timing. Specifically (i) The deal unlocks the FCF from Inotera ($2bn since 2013 and ~$400mn in 2016). (ii) While EPS accretion will depend on profitability at Inotera, there is clear GM accretion. The EPS accretion from deal will depend on profitability of Inotera – proforma using 2014 estimates implies accretion of $0.31; however 2015 estimates for MU and Inotera imply dilution of 7%. Deal would be 150bps/240bps accretive to GM even for CY15. (iii) The deal potentially lowers risk of acquisition of Inotera and Nanya by a Chinese entity.
Raymond James’s Hans Mosesmann, who has a Strong Buy rating on Micron stock, and a $26 price target, thinks that in fact Micron may have short-circuited some divergent views that may have been prompted by Chinese involvement:
Our sense is there could have been emerging divergent views at both Inotera and Nanya as a result of China Unigroup’s interest in the DRAM space and the recent departure of Inotera’s chairman to Tsinghua. Micron’s CEO Mark Durcan’s potential masterstroke on the Inotera acquisition and the Nanya license roadmap is that there can no longer be an undercurrent of dissention on the Inotera board, Nanya is guaranteed access to leading-edge DRAM technology, and Micron’s equity stake in Nanya increases the company’s control there, which had been viewed as an angle for the Chinese to enter the DRAM market. The timing also seems to suggest that the memory cycle is stabilizing in 1H16 given the up-to-$1 billion equity component to funding the Inotera deal.
Sentiment: Strong Buy
YOU'LL SEE A BIDDING WAR OVER MU
MU is not all about DRAM morons
This company is taking several stands on many cut edge tech going forward , not to mention the the stinky lousy DRAM and pc is just one part of their business
you think this idiot clown is an authority knowledge on MU?? lol
He pumped SWKS at $115!!!!!! go figure lol
and what if they beat and guided higher and announced they off shore buying/partnership interest???