The short ratio is about 3&1/2% which is very low. Once again I am always wary when a company buys back at multi, multi-year highs and stats show buybacks not as successful as people think over the long term. If their earnings have peaked along with their margins they will be buying back at elevated levels. I believe this will go higher early tomorrow (the AH high I saw was $33.19) then you may see a pullback. I follow INTC mostly because I trade MU almost everyday MU is more volatile. I have not traded INTC for a few months now but I will leave it on my screen tomorrow to see if there is a nice dip to buy. The analyst's calls may tell us where shares go Wednesday.
Maybe he's working on the Lumber Liquidators (LL) story since he was recommending it in November over $110. The video is on line to view. Sadly a lot of stocks move temporarily on his pumps instead of their own performance. I got long RAD today and will look to add if it drops some more but let us not forget he called RAD a growth stock in the mid $8's then they warned. Cramer's specialty is reminding you of the ones he gets right but has amnesia on so many of his picks that have been hit hard.
As stupid as it may seem I noticed that that gas prices dropped overnight more than .20 here where I live in NY. The recent elevated prices may have been killing retail in general lately anyway. Todays retail numbers were a mixed bag the headline missed but the underlying numbers were OK. That's why I say that if the market is looking at the drop in gas prices maybe these stocks start to rebound. Intel put out a good quarter tonight and BBY does sell a lot of products with Intel in it. I just figured that a 10% fall from the $32.50 area was possible. Let's see if there is some follow through or if this bounce was a one day event. One thing for sure they weren't selling it today on every bounce like they were the last week.
even over their prior guidance. However my main concerns are it is trading at more than a decade high same can be said for the margins which may have peaked. They would not really talk about the margins going forward during the CC telling the analysts to do the math for themselves. Another concern is that they are spending a huge amount of money each quarter on buybacks and will continue to do so when the shares are at these elevated levels. I think you may see an initial move higher early tomorrow then you may see some profit-taking soon after. The stock is up a lot in 6 months which needs to be watched. It was a good quarter though despite these possible concerns.
Check out my reply to the "Support level?" post I thought it may drop some 10% from the high to near $29-$29.25 where it got to yesterday. I hope that will be the support for now.
The premium would be higher than $35 but it ain't happening. They would have to borrow big time based on MU's current market cap plus premium and what Intel has in cash on the balance sheet. Intel's market cap would allow a funder to give them the additional funding but they will not blow out their cash and leverage on one purchase they may attempt to buy a smaller market cap company to cut out some type of product supplier. Mu is too big now they are on their own a victim of their own success.
$29-$29.25 would be around a 10% pullback off the recent high. Citibank upped it's target to $36 from $31 with a buy this morning yet this has acted like a dog for most of the week. Seasonal weakness perhaps? Post and pre-school time of year and well before tech picks up seasonally around August- September. Right now the stock has a mind of it's own.
I watched the video now you have to consider this was back around November 2013 and LL is or was a growth stock and when growth slows or stops they usually get killed quickly. You have to remember Cramer is there for Cramer's ego and his old hedge fund pals who I believe get tipped off in advance when he does his rants about specific stocks. He does get some stocks right but there is also a long list of Cramer pumps that have collapsed (SHLD, DMND,JSDA etc.) not long after his pumps. Of course he will only remind viewers of the ones he gets right. My favorite part of his show is when they actually allow a caller to get through who bought one of these stocks after his recommendation and is now so far under water and asks him what should they do. He always has a dumb look on his face and usually replies " that's not working in this market". This is the main reason why nobody should tell an investor to buy anything without doing their homework. What Cramer forgets is most of his worshippers buy and hold and can get hurt doing it. If you listen to him and buy growth stocks you had better be nimble and aware of when their earning's dates are to get in and out. Bottom Line Cramer is a clown and that's why he continues to get hammered on social media.