Like I just posted it seemed like those two negative calls especially BofA's were just piling on especially since Intel will not have this plant operating for a few years and that is an eternity when it comes to technology. MU just hit $17.
Timmy & Seaburg (Cowan analyst) both endorsed it. Timmy said no way they are going out of business which the market is pricing in. Funny thing yesterday Dan Nathan on FM said the chart looks like it's going to zero. I think that may have had a little bit to do with today's action plus the stories about cash burn. In situations like this markets sometimes wreck stocks like this right before some kind of deal happens.
It would be nice but the US politicians will not let it happen. Today is a Barron's bounce of a positive mention over the weekend along with a lot of short covering I would bet.
I'm long but that statement will not end up being accurate. I fear MU shares will get wrecked if they issue stock and load the balance sheet with debt it's what these arbitrage guys do best in this market. Both SNDK and MU will get hit just like they are doing with the recent Dell deal with EMC both VMW and EMC are tanking and EMC is nowhere near the buyout price. It will happen if MU does both of those things to buy SNDK.
That's a big part of the earnings cuts they said were due to the bump in wages. They were so far behind the times they have to play catch up now and if you look at the employees in the stores very few actually talk to each other for what ever the reason. That's always been a big problem I believe the customer service the employees are like robots along with items not in stock.
Cut MU to underperform with a $12.50 target because of the Intel news. I have one issue that it will take a few years to get the facility running. Needham also cut MU from strong buy to hold I guess on the same news. Shares were actually hanging in there until the late day market drop considering the two downgrades. It is a bit strange how MU was cruising along near $19 for days and a $3 drop in the shares and the piling on begins now. Very similar to the Morgan Stanley call on TWTR today. You can always tell which side of a trade the Wall Street firm are on.
With the pull back near $8 I would watch for anything close to $9 soon and take it I would not expect another bidder to arrive. The main obstacle here is the regulators so pay attention to the next few days and weeks the share price action. Sellers want you to give up your shares cheap and they will try and get shares down into the $7's the next day or two. The only thing that would hurt you if they do not allow it to happen then shares would be under $6 I believe rather quick. I sold a lot of shares today at $8.65 after the halt and as luck would have it was not far from today's high nor the deal price. Good Luck!
Down 69 now...the Nazdaq. MU hanging in there throughout the recent market pain but with a long weekend coming, Europe tanked earlier and China trading again next week I cannot imagine a rally into the close...but that's when stranger things happen. The Fed is to blame for much of this because of the uncertainty they create each day with their mouthpieces talking from both directions.
The last time T was green on my screen. If the Fed holds on Thursday and markets rally and T does not join in that tells you for sure the market does not like the stock or the deal.
MU bucked the market all day long I believe because of the MS cut from $19 to $17 this morning. Cramer may be a joker at times but I did learn one thing from him a stock will not bottom until the analysts have cut their estimates and targets. Today's MS call may have been the last cut before MU's earnings report of course next week can change everything in either direction..
appears to be caught up in these options and ETF plays pushing shares lower. Either way this stock is down over $2 in a very short period of time and acting like trash. I am still amazed that Icahn is silent about HTZ.
That's what I think too. Futures may be flattish in the AM with the jobs number coming so shares may move on it's own momentum but I think it may break $16 at some point but I think a lot of the move above $15.50 is short covering. In this market anything can happen I would not be shocked if we even see the $15 area again tomorrow. For now it appears to be $15-$16 but we have to see the analysts moves tomorrow. On the CC execs did a better job on this call but a lot of the analysts questions were left unanswered as far as what they saw for the future so they may not be tripping over each other to move their targets higher since many are already in the $20's and $30's. The quarter is a start to get the stock off the bottom I guess.