Robert, All you have to know to fear MU is that it has risen to current prices under these circumstances. We have a single digit stock value that has been as high as $95 during the last 4 years for no reason whatsoever that has to do with real business. So, you are looking at a well-oiled PR machine, a group of greasy shil analysts, brokerage firms that know they can run this turkey with a few well-placed buys and fund cos. unwilling to sell their huge holdings. So, MU can always rally for no reason. My feelings have long been that the stock will double when they finally declare bankruptcy.
Meanwhile, the business situation, which has never been good, is about as bad as it has ever been. The co. has never kicked out free cash flow, hence the huge debt to keep the fabs running, but now is even worse. The price of DRAM is well below breakeven. MUEI is a drag and will be so for awhile. PC sales growth is in its worst condition in industry history and about to fall off the cliff completely. All the diversification scams have proven to be expensive diversions.
So, I own puts as this one will always go back down. But you never know when the herd will go crazy again, so use a wise money mgt. system. |
