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Technology Stocks : Semi Equipment Analysis
SOXX 270.83+1.0%Nov 21 4:00 PM EST
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To: Kirk © who wrote (78773)1/27/2018 8:07:25 PM
From: bigchad2 Recommendations

Recommended By
Donald Wennerstrom
oldbeachlvr

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I sure don't understand the 5 PE other than the belief China will successfully flood the memory market ....






You and me both! I know Micron is cyclical and all (boy at least I hear it is all the time from an endless number of experts) but think about this.......with the structural changes in their business that Micron has made the past 3 years by upgrading their manufacturing technology thanks to the help from folks like Lam et al, it has been estimated by more than one analyst that there can be a worse than average decline in DRAM pricing and Micron can still earn more than $4 a share with trough pricing. They aren't yet even taking into account that Micron's NAND business is still early in ramping and margins and earnings will greatly expand this year and not taking into account 3dXP, another new technology that isn't adding anything at the moment but may be good for a few bucks per share in earnings (maybe aggressive, maybe not). So Micron is trading at well below10X sucky trough earnings with an earnings power of upwards of $15 per share during good times (yes $15 a share) while the market AS A WHOLE is trading at over 20X historically good earnings with record profit margins because productivity is at an all time high and companies are paying workers, if they have any, didily squat. Makes lots of sense!! Do your self a favor and buy a couple of Micron shares if you haven't already.
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