MU — 11 entries on this page, 1 of them a change of direction.
The shares of Micron still hammering away at that 50-day moving average. That 50 will continue to decline next week. So, I don't count Micron out and it has the possibility that it can continue to hold the anchor from the Leo low.
And and they them and SKHix and I think Micron are the only three companies in the world that have that bigger rule of 40 which is I mean it speaks to what Palanteer is doing but it's also because those are hardware companies.
there there's there's a reason why Micron and the Neil clouds are up after hours, right? That's a it's a good find, Jose.
What are the chances the AI buildout goes to 2K for Micron? feel the case is stronger than before, but it feels so um you know what really shot up the memory stocks was leverage in Korea.
I hate to say it, I don't love playing off of leverage, but I think what drives a lot of the memory cycle right now is I will show you hold on in our stock tab. I believe it is under the Nvidia tab when we were prepping for the Nvidia earnings.
So Missouo busy this morning across the memory space with an eye on Micron Sandis Applied Materials and Lamb Research. Now it is maintaining outperform ratings across the board which is the equivalent of a buy rating for Micron.
They've lowered the price target to 1300 from 1375 for Sandis. They've lowered it to 1875 from 1900 for AAT down to 590 from 650.
So, here's kind of like what this actually looks like and what I'll be doing. So most people buy them. Well, you can also sell them. Okay? Okay, that's the simple most straightforward story to what investors can start doing to collect upfront income when you sell a LEAP option.
It's just selling a put option. Very, very similar. Okay, so I'll show you what selling a put option looks like.
But uh you know now the question is are we getting visibility potentially into price decreases the second derivative turning negative and if the second derivative turns negative on price and growth and they're not buying back as much as expected what does that mean for a company like Micron who's obviously expecting a significant uh uh buyback market a lot of people are expecting big buybacks here mostly because the executives are like oh yeah we're going to return so much capital shareholders Yeah, that's great.
Cool. That sounds wonderful. But then you get UBS that comes out and UBS is like, "Oh yeah, you know, we're actually we're going to return like I don't know how about how does uh eight uh you know, 40% of the company we're going to buy back potentially 40% of the company sound."
That's great. That helps. Thanks, UBS. But does that actually end up uh driving reality if Micron comes out and says, "Oh yeah, we're going to do a buyback and it's only 10%." Right? Oh, that's disappointing.
I think Samsung might be a better buy than Micron and Micron might be the best buy.
Meanwhile, um Micron also uh you kind of doing what we want it to do. It's pulled back down not all the way to the 20-day moving average, and not quite to the Leo anchor as well.
I'd love to see it kind of shake out down towards there, then get back up in here and get ready to go. I don't think it's quite ready to go yet. We'll see.
Now let's take a look at another very different type of stock. One that's very popular is micron ticker symbol MU. So if you look at micron the question would be how do you value the stock?
Again, which method do you use? Can we use the discounted free free cash flow method, which is my favorite? We cannot because this business doesn't have a history of consistently increasing free cash flow or consistently increasing cash from operations.
And and even today you could apply it to the Microns of the world in the memory components though. You know, I think that's a different level of record profits. But I would look at them and say, "Hey, I think the market's missing how good the balance sheets are, right?
These guys have always run with like 2x leverage, now they're running 1x net cash. And then what ended up happening was, "Yeah, but they were doing it cuz of like kind of primetime profits, and when the profits fell out, they just had these huge cash pools sitting around."
There's a stock. It's named Micron, right? One of the big memory chip companies. All these memory chip companies have been getting hit the last couple months, right? They all peaked a couple months ago and they've all been getting hit.
And so M MU I was looking at the stock recently and it's down 30% from highs.
