Micron's profits grow fast, free cash flow is down, and in an oligopoly with two or three suppliers its products are booked for almost two years. At 5.41 times forward earnings it is cheap if those profits persist, but Micron is highly cyclical, so after adjusting earnings it may not be cheap.

Okay, yes. I mean, look at a company like Micron, for example. So, as I said, I mean that profits are growing very rapidly. I mean, this is a period of exceptional earnings growth .

But you also have the contradiction where free cash flow has decreased.

But Micron seems interesting because it operates in an oligopoly market . As you know, there are two or three main suppliers. Therefore, this limited competition has truly changed the dynamics of the business.

The profit margins are simply insane. I mean, their products are fully booked for almost two years.

I understand Micron's situation; I'm looking at their data right now. Its stock is trading at 5.41 times forward earnings . It's very cheap if you believe the profits are sustainable.

Yes, you cannot consider those profits normal. It has always been, by its very nature, highly cyclical. Micron is one of those companies that consistently appears on deep value screens because the earnings are so high compared to the low market valuation, because people know it is cyclical and fluctuates up and down .

This might explain why Micron seems cheap, although it might not actually be if you adjust those earnings.