This "rant" by Cramer is priceless. It wasn't too long ago he was "hawking" MU as a great buy. My how time changes everything. Here is the excerpt of his thoughts on Micron from the URL you posted.
Talk about BS, this takes the cake.
Finally, Cramer addressed the backlash he received after cautioning investors about the stock of Micron.
His Twitter followers pounced after he detailed some potential negatives for the chipmaker on Friday and said he preferred the stocks of Nvidia and Broadcom.
"The bull case? Micron's stock sells for less than five times earnings," Cramer said. "To me, though, that's exhibit A for the bears, because when Micron has sold that cheaply in the past, it usually means that the company won't be able to meet its earnings estimates."
The "Mad Money" host pointed out that Micron's two main products, flash memory and DRAM chips, are both commodities and subject to boom-and-bust cycles.
Cramer said that pricing for flash memory chips peaked several months ago and DRAM could be following closely behind: a potential death knell for Micron's next earnings report.
"I've seen this stock collapse three separate times in my life and the circumstances were almost identical to those we're seeing right now: more supply coming on after a big run in price for DRAMs," Cramer said.
"The difference? This time Micron does have a second product line, flash, but as I mentioned, flash has peaked, and once commodities peak, they tend to stay down for ages."
|
