About 10% (11M out of 100M approx.) of MU's float were short as of July 8, per the Yahoo! Profile link, which is about 2.5 days of short interest. That's a decent sized short position, and short-covering might explain part of the recent spike. By the way, I found it interesting that only about 1/3 of the shares outstanding are in the float. Who owns the rest?
Surfing the news at,
cbs.marketwatch.com
Chip and chip-equipment companies in the Philadelphia Semiconductor Index were in strong rally mode Friday, energized by gains in shares of Micron Technology (MU: news, msgs), up 4 1/2, or 7 percent, to 65 7/8. The sector rose 1.7 percent
David Wu, an analyst at ABN Amro, reiterated his "buy" rating on Micron as well as his six-month to 12-month price target of $70 per share. Wu wrote in a research note that he expects DRAM prices to rise toward $7 led by "strong OEM demand and significantly reduced inventories at Samsung, Hyundai/LG Semicon and in Taiwan."
Wu believes these factors will help make fourth quarter "upside surprises likely to happen."
"Six weeks ago you couldn't give stuff [DRAMs] away at $4, $4 1/2 bucks and now you're seeing instances where pricing is up in the $7 range," said Rick Owens, vice president of research at D.A. Davidson. "It's been a phenomenal turn in the DRAM industry which I think is carrying some of the other stocks along." |
