|
04-Oct-99 10:47:45 Micron Technology has gained $1 to trade at $72 ½, as the semiconductor sector continues its recovery. Several sell-side analysts have suggested supply concerns after the Taiwan earthquake were overblown, and the recent share price weakness has created a buying opportunity. Adding additional interest to MU, the firm will report its FY99 4Q later today. The Street is expecting a loss of $0.18 today according to the First Call consensus figures, and will be paying particular attention the company's outlook on the FY00 1Q. Rising DRAM prices, which spiked higher on supply concerns, should add to earnings in the next two quarters, but there is some concern that these higher prices cannot be sustained in the long term. Volume in MU has already surpassed its 10-day average daily volume of 8.7 million shares. Excluding the opening trade of 370k shares, block trades have contributed to 38% of today's activity, indicating institutional investors are backing today's climb. I-Watch illustrates early-session support has pushed the stock up into positive territory, though traders are still looking to pare shares at prices up to $72 ½, capping gains in the short-term. Interestingly, the I-Watch post trade data reveals sell transactions outweigh buy trades by 1.3 times. Investors are not looking to dump shares, driving prices lower, but rather looking to capitalize on today's gains. Watch for increased super buy messages at these higher share prices to indicate the stock can regain support above $74 per share. |
