Micron Technology Inc (MU) is a global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory. Micron is the largest U.S memory company and the company provides memory solutions for computing, communications, consumer and industrial applications, and serves both wireless and embedded applications.
I feel a big enthusiasm toward chip makers that offer DRAM (dynamic random-access memory) products. Other producers are Samsung (OTC:SSNLF) and SK Hynix (OTC:HXSCF). Micron shows merit as an investment and will probably buy back its stocks in the future.
Maintaining its relationship with Apple (AAPL) will help the stock. DSG (DRAM Solutions Group) sales are up 198%, in part due to the acquisition of Japan`s Elpida Memory. One of the compelling things about Micron is its $615 million takeunder of Elpida Memory.
Elpida is a producer of DRAM for mobile devices. Net sales for the Q1 of 2014 increased 120% Y/Y. The devalued yen also helps pricing and cost of the overall transaction. DRAM is responsible for 69% of net sales and that is up 39% in 2013.
Micron was founded in 1978 and is headquartered in Boise, Idaho. The stock is up +26,5% so far in 2014. Up +158,1% (1 YR). So, what now? Is Micron still a buy? Micron has an extremely low PEG ratio of 0,86.
This is one of the best performers of all S&P 500 companies last 12 months. The stock is up +158,1% (1 YR), while S&P 500 is up only 17%. Micron stock still have room to rise up and seems to have strong earnings growth prospects.
One thing to consider is the high amount of insider activity. Some big stakeholders have diluted their stake in Micron, and heavy insider selling is a point of worry, but despite the selling activity, the stock is not volatile. It seems like the investors don`t care about that.
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