Okay, so I must say that I'd started a post and it got lost, so I'm going to condense this one out of frustration and for the sake of brevity.
Technicals -
This weekly chart shows that shares broke their upward sloping trend line (white line), and it also experienced a bearish breakdown of the R.S.I. (yellow circle). The MACD also confirms this bearish trend. Although not depicted on this chart, shares fell below their 200-day moving average today, which was at $49.97.
Back to the weekly... there are two swings, a major (tan lines) and a minor (blue lines). As such, I'll present the supports as zones rather than absolute levels. The first zone of support comes in at $43.53-45.76. The next zone is at $37.00-41.29. The last zone is around $26.85-30.48. The support at $26.85 is the low from Aug. 2017. Underneath that, there's one more support level at $21.19.
Let me be clear in saying that I don't think we break down beyond the $41 area, as its major support. In fact, I doubt we go too much further from here, so I'm targeting the first zone at, say, call it $43-46.
I added to my long-term position today and will be looking to add more on additional weakness. I also bought some September calls in my shorter-term trading account.
Fundamentals -
Shares are dirt cheap. At current prices, it's trading at 4x 2018's estimated earnings ($11.77), and at 4.1x 2019's estimated earnings ($11.60). The PEG ratio is 0.14, price/sales is 1.9x, and price/cash flow is at 2.9x. All metrics suggest a great value.
Finally, while MU doesn't pay a dividend (which I believe will soon change), it's worth noting that the company recently authorized a $10 billion buyback program, which given its $55 billion market cap, equates to over 18% of the float being bought back, and obviously that should bolster E.P.S. figures significantly.
Given the volatile nature of this name, I suggest scaling in and using this weakness as an "accumulate" setup.
Sure, memory pricing will go up and down, but let's be real... the need for data storage/memory is not going away anytime soon. There's also the "crypto effect" at play, as Micron is in that industry as well, so if any recovery in BTCUSD, LTCUSD, ETHUSD, XRPUSD, etc occurs, Micron should benefit (along with NVDA).
Bottom line - BUY BUY BUY. This thing is too cheap to pass up, and the current risk/reward is growing more and more compelling as share prices decline.
Technicals -
This weekly chart shows that shares broke their upward sloping trend line (white line), and it also experienced a bearish breakdown of the R.S.I. (yellow circle). The MACD also confirms this bearish trend. Although not depicted on this chart, shares fell below their 200-day moving average today, which was at $49.97.
Back to the weekly... there are two swings, a major (tan lines) and a minor (blue lines). As such, I'll present the supports as zones rather than absolute levels. The first zone of support comes in at $43.53-45.76. The next zone is at $37.00-41.29. The last zone is around $26.85-30.48. The support at $26.85 is the low from Aug. 2017. Underneath that, there's one more support level at $21.19.
Let me be clear in saying that I don't think we break down beyond the $41 area, as its major support. In fact, I doubt we go too much further from here, so I'm targeting the first zone at, say, call it $43-46.
I added to my long-term position today and will be looking to add more on additional weakness. I also bought some September calls in my shorter-term trading account.
Fundamentals -
Shares are dirt cheap. At current prices, it's trading at 4x 2018's estimated earnings ($11.77), and at 4.1x 2019's estimated earnings ($11.60). The PEG ratio is 0.14, price/sales is 1.9x, and price/cash flow is at 2.9x. All metrics suggest a great value.
Finally, while MU doesn't pay a dividend (which I believe will soon change), it's worth noting that the company recently authorized a $10 billion buyback program, which given its $55 billion market cap, equates to over 18% of the float being bought back, and obviously that should bolster E.P.S. figures significantly.
Given the volatile nature of this name, I suggest scaling in and using this weakness as an "accumulate" setup.
Sure, memory pricing will go up and down, but let's be real... the need for data storage/memory is not going away anytime soon. There's also the "crypto effect" at play, as Micron is in that industry as well, so if any recovery in BTCUSD, LTCUSD, ETHUSD, XRPUSD, etc occurs, Micron should benefit (along with NVDA).
Bottom line - BUY BUY BUY. This thing is too cheap to pass up, and the current risk/reward is growing more and more compelling as share prices decline.