PRICE TO EARNINGS RATIO of Amazon who is not growing is over 500. Micron who is growing significantly is 10.
500/10 * 25 = 1250 stock price equivalent for MU.
Micron is at least a 50 bagger going forward
From the Conference Call:
As a result, for the first six months of 2014, AMD’s revenue increased 26% and our non-GAAP EPS improved by $0.26 compared to the first half of 2013. We have now delivered four consecutive quarters of non-GAAP profitability and we remained on track to deliver on our commitment of non-GAAP profitability and revenue growth for the full year 2014.
Micron profits. No one forecasted shortage due to Samsung & Hynix on yield ramp shortfall and post-fire installation delay as described in Barrons. DRAM Exchange site and Asia press showing initial Memory Spot Price Uptick. US NY Factories Strongest in 5+ years as economy goes into second gear as Fed and economists forecasted in this period.
on the 15minute tick chart AMD has pierced above the 50- 100- and 200-minute moving average resistance lines, which is breaking through through three resistance lines the past three days.
At the same time AMD Moneyflow has been rising strongly on since June 26, and above its 22 tick moving average on the 15minute chart.
This is bullish and fits with the money managers who CNBC stated were too much in cash last quarter, missed the market rise, and now as Fed GDP 3% to 3.5% Growth begins to prove itself, the funds are beginning to re-enter into growth technology and banking sectors.
AMD is heading much higher in this PC, Server, Networking equipment CapEx expansion cycle.
First Barrons reported short yields by Samsung and Equipment install delay by Hynix three weeks ago. Last week Seeking Alpha reported Avnet Putin DDR3 on allocation. Today Digitized reports Buyers seeking "long term contracts from Micron" to assure supply. Small buyers will be squeezed out and have constrained shipments, raising DRAM Price and boosting major PC vendors over white boxes. Article follows .........
DRAM chip clients seeking purchasing contracts with Micron, DigiTimes says
Some downstream DRAM chip clients are looking to sign long-term purchasing contracts with Micron to ensure a steady supply of memory chips, reports DigiTimes. According to industry sources, Micron currently boasts a production capacity of 200,000 wafers a month, making the US-based memory chipmaker a strong potential supplier on a long-term basis.
By RBC Capital. As DRAM undersuplly chip shortage due to Hynix equipment delay and Samsung new line width yield shortfall (Barrons article this month) ripples further into price, there will be more bump ups in ratings and price targets. The Silicon Upcycle has just begun, with 350Mil+ Laptops at 4.5+ years old due for upgrade
UNNAMED SOURCE rumored a future Samsung fan..which then takes a year afterward to ramp.
Unnamed source said same on Hynix half year ago that the vendor later refuted as wrong. Such head fakes always happen in early industry upturn.
This 3-vendor oligopoly will manage wisely.
(this is not 1972-1988 wild west with 15+ newbie DRAM suppliers including Oki, Fujitsu, NEC, Toshiba, Matsushita, Mitsubishi, Inmos, Hyundai, TI, etc)
This excerpt from the site named 247wallst
Micron Technology Inc. (NASDAQ: MU) was raised to Buy at Bank of America Merrill Lynch, but the upgrade was all the way from an Underperform rating. Perhaps the biggest news was that Micron's price target was raised to $40 from $32 in the call. This was based on Micron having a sustainable upturn, a lower threat from Samsung, new technology execution and a dividend payment.
Another positive research call for Micron came from Credit Suisse, which reiterated its Outperform rating. This call brought on a massive upside target though to $50 from $30. The firm's upgraded target was based on strong demand trends from consumer and enterprise.
this from a news article this week....
The Bank of Japan's tankan survey released last week showed that large firms plan to raise capital expenditure 7.4 percent in the fiscal year to March 2015, more than initially expected.
Yahoo finanance shows 1 analyst covering Zhone.
Analyst Ratings Network shows 4 Positives for Zhone:
Four most recent analyst ratings for ZHNE are: 2 Upgrades. And 2 Buy Ratings.
Hype news media saw the stronger than expected housing a ctuals so they trotted out bears to publish their pessimism. This is irrational bottom when they tout negative theorists while blind to healing actuals.
Bullish MoneyFlow divergence for Zhone. MoneyFlow Index on the 1Day chart was last at this level on April 16 when the stock price was $3.60/share.
Trading action with price & volume jumps signals accumulation starting last week through now. Today RUT and NASDAQ dip then rising on US ISM, China ISM .. anticipated EU QE Thursday or Friday as liquidity is coming to float up all boats.
Exactly - it's the same false rumor nonsense during an early demand upturn. Usually caused by shorts trying to bash it so they can buy. The Vendor weighs in to refute the false rumor and we "pop" as the market demand lifts prices & profits. This is a three vendor oligopoly with methodical leadership companies who are successful at running their business. (this is not 1970s-80s with 15+ vendors slicing throats e.g. Oki, NEC, Toshiba, Inmos, Fujitsu, etc.)