The so-called experts have already reduced annual earning to $2.50 - $3.50 for next year. Considering Micron's product breakthroughs and the ever growing need for storage, it's unlikely they will reduce guidance further. But let's consider worst case...suppose earnings are going to fall off a cliff, say $2 next year...with a normal PE multiple, MU should be a $25 stock. Factor in buyout offer from Chinese (which won't happen, but could bring other buyout offers), MU could be over $25. No, I can't explain why MU is currently below $18...but it sure seems like a great opportunity to buy low. Don't counter with "the market is always right" because if that were true, stocks would never have dramatic price moves. The market is often wrong, but it can be painful to fight the trend.
You are correct. LUV is NOT getting premium valuation, but LUV certainly deserves a premium. Unlike the other debt-laden airlines (some of which are only around after going bankrupt), Southwest is the ONLY airline that has consistently made a profit, even during the recession.