|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||34.02 - 34.02|
|52 Week Range||26.45 - 34.59|
|Beta (3Y Monthly)||0.23|
|PE Ratio (TTM)||1.17|
|Forward Dividend & Yield||0.19 (0.54%)|
|1y Target Est||N/A|
Moody's Japan K.K. has affirmed Toshiba Corporation's B1 corporate family and senior unsecured ratings, as well as its Not Prime commercial paper rating. "The change in outlook to negative reflects Toshiba's dwindling cash balance due to unexpected cash outlays, as well as increasing uncertainty over its ability to turn around its profit," says Masako Kuwahara, a Moody's Vice President and Senior Analyst. Moody's forecasts that Toshiba has sufficient cash to cover the negative free cash flow and planned share buybacks at least over the next 12 months, but after that, it would need external funding to supplement its depleting cash balance.
A lot is happening on the macroeconomic front at the moment. Between the interest rate discussion and the U.S. trade war with China, companies like Micron Technology (NASDAQ:MU) are likely pulling their hair out, trying to figure out the direction of the global economy. And that's not a good thing for the owners of MU stock.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs another InvestorPlace contributor, Tezcan Gecgil, recently noted, Micron stock is incredibly volatile. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates In 2019, it's traded above $44 for an extended period on two occasions and below $33 at two different times. If you bought MU stock at its two highest points in 2019, you'd be sitting on a loss of approximately 9%. As they say, timing is everything. So, now that MU stock has retreated from its late-July highs, investors are likely asking themselves whether it's wise to buy Micron stock on its latest dip. Here are what I see as the pros and cons of buying MU stock around $42. The Pros of Buying MU StockGoldman Sachs analyst Mark Delaney upgraded Micron stock on July 22 from a "neutral" to a "buy" while boosting his 12-month price target on MU by 40% to $56, suggesting that the stock could rise 33% over the next 12 months. As InvestorPlace contributor David Moadel pointed out, Delaney expects NAND prices to improve as excess inventory is depleted faster than expected, due to Toshiba Memory Corporation's (OTCMKTS:TOSBF) fab outage . Delaney thinks market conditions will improve, which means the cut in earnings guidance by MU might be a tad conservative. As a result, MU's Q4 results may beat analysts' average outlook, he contended.As Moadel also stated, despite the decline of MU's earnings in Q3, it still managed to deliver earnings per share of $1.05 on revenue of $4.79 billion. Both were significantly higher than analysts' average estimates. Another positive about buying MU stock at its current prices is the fact that MU continues to use its free cash flow to repurchase its shares. In the first nine months of fiscal 2019, Micron's repurchased 67 million of MU stock at an average price of $39.70 a share. As long as Micron is buying its stock, investors ought to be doing the same. The Cons of Buying MU Stock at Its Current PricesThe biggest reason investors are afraid of purchasing Micron stock at the moment is the fact that the company gets 57% of its revenue from China. As the trade war drags on, the Chinese are going to start making their own DRAM chips to bypass U.S. companies and the American tariffs. InvestorPlace columnist Jamie Johnson recently pointed out that China's Changxin Memory Technologies is investing $8 billion in its DRAM operations,. Johnson think there's a real possibility that other Chinese companies will take similar steps. At some point down the road, China's reduced reliance on American chip makers is going to be bad news for Micron stock. China is not going to become less reliant on products from American chip makers over night. However, China's efforts should make investors question the wisdom of holding MU stock for three to five years. Another reason to avoid MU stock at its current prices is its deteriorating financials. Although Micron's Q3 EPS handily beat analysts' average expectations, it was still 66% lower, excluding some items,, than in the same quarter a year earlier. Furthermore, analysts' estimates for MU's earnings are falling dramatically. At the end of May, analysts' average estimate for Micron's FY20 EPS was $4.51 per share. Now the average EPS estimate is down to $2.49, representing a 45% cut in less than two months. So, is it wise to be running into a building as it's going up in flames? I don't think so. The Bottom Line on MU StockThere's no question that Micron stock has faced some short-term volatility in recent days as a result of the trade dispute. That's probably not going away anytime soon.MU isn't slated to announce its Q4 earnings until Sept. 19, so there's probably plenty of time to consider whether to buy MU stock before the company sheds much more light on its business.I'd try to buy MU stock in the mid-to-high $30s. Buying Micron stock at those prices is meaningfully safer than purchasing it at its current levels. Given the volatility of MU stock, I wouldn't be surprised if investors were given a third chance to buy MU in the $30s before the year is out. I guess we'll see.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Is Micron Stock Down But Not Out?Â appeared first on InvestorPlace.
As long as there are skittish retail traders who react to each little bit of news, portfolios will churn and newbies will get burned. But you don't have to be a victim of FUD (fear, uncertainty, and doubt) if you're holding Micron (NASDAQ:MU) stock; those who own MU stock have invested in a solid performer with a strong future.Source: Shutterstock I've seen some folks on social media recommend shorting MU stock, and they're all entitled to their opinions. Still, I'm not planning on selling my positions; trade war or no trade war, MU stock is a long-term winner with plenty of gains in its future. Goldman Made the Right Call on MU StockI'm not one to blindly follow the lead of analysts, but sometimes their assessments are spot-on. Such is the case, I believe, with Mark Delaney, a Goldman Sachs analyst who recently upgraded Micron stock from a "neutral" rating to a "buy" rating.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Generation Z Stocks to Buy Long Delaney also increased his price objective on MU stock substantially. from $40 (which I thought was unreasonably low) to a much more optimistic $56. Evidently this analyst is increasingly bullish on semiconductor stocks generally, suggesting that Goldman is taking a more favorable stance on chip makers due to a supply shortage. Delaney wrote:We are now more positive on global memory stocks as we believe that the excess inventory memory companies are carrying will be depleted faster than our previous expectations, primarily in NAND flash as a result of the Toshiba (OTC:TOSBF) Memory Corporation (TMC) fab outage that has disrupted a mid single digit percent of annual industry production (and to a lesser extent incremental capex/utilization cuts). MU's Earnings and Revenues Are Looking SolidIf Micron's fiscal Q3 results are any indication of its health as a company and of the attractiveness of MU stock as an investment, then trade-war worries are nothing more than a distraction for Micron stock.The numbers bear out that thesis, as MU's actual earnings per share came in at $1.05, compared to analysts' average projection of just 79 cents, Its revenue came in at a very impressive $4.79 billion compared to analysts' average expectation of only $4.69 billion.This all took place during some of the most heated flash points of the U.S.-China trade war; bear in mind that Huawei was responsible for 13% of Micron's revenue during the first half of fiscal 2019.According to Micron Chief Financial Officer David Zinsner, Micron "would have come in at the high end of its revenue guidance" if it weren't for the financial burden of the Huawei trade restrictions. Could the Trade War Actually Boost MU Stock?While some social-media gurus have expressed their concern that the ongoing tariff war could take its toll on the MU stock price, Joseph Moore, a Morgan Stanley analyst, actually sees a silver lining to the international wrangling for Micron stock. Increasing his price objective for Micron stock from (a ridiculously low, in my estimation) $31 to a more logical $48, Moore was almost apologetic about his previous pessimism:[G]lobal trade tensions and potential supply risks are driving shorter-term inventory accumulation, which makes our previous underweight rating less actionable.Apparently, Moore doesn't view trade tensions as a reason to run for cover anymore, and I couldn't agree more. He even conceded that (MU's) "earnings are bottoming out" (a rather odd characterization, considering Micron's amazing earnings performance in Q3) and changed his rating on MU stock from "underweight" to "equal-weight" (still not as positive as I'd rate it, but maybe I'm asking for too much from these stodgy big-bank analysts). The Takeaway on Micron StockLike other semiconductor stocks, MU has backtracked somewhat from its recent highs and might even be considered oversold in the short-term. Therefore, I don't see any need to take profits on Micron stock; let the trade war rage on, as MU shareholders will prevail in the end.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Relax and Buy Micron Stock, Despite the Trade-War Turmoil appeared first on InvestorPlace.
Memory stocks have been on the rise since June 25, when chip maker Micron Technology reported better-than-expected earnings results.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Toshiba Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.