WDC, NAND, NVM, enterprise storage systems, etc. Message Board

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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 195.96

-20.3%

Nov 20 3:59 PM EST

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JCnieuwenj

Sam

To: Sam who wrote (3782)	5/23/2018 10:18:48 AM
From: Unwelcomeguest	2 Recommendations Read Replies (1) of 4828

More MU Mojo from Needham. Received in my eTrade account: Micron target raised to $100 at Needham 9:18 AM ET 5/23/18 \| Briefing.com . Needham raises their MU tgt to $100 from $76 following co's Analyst Day in New York and positive pre-announcement. Firm now gets run-rate earnings of $13-14, and with the operational improvements, they could add another $6 EPS. This level of earnings is unheard of in the memory industry and for that fact, firm has never seen this level of earnings in MU's 40-year history. The new CFO announced a $10 billion stock buyback and will return 50% of its free cash flow generation to stock repurchases. At current levels, this equates to roughly 15% of the shares outstanding. This buyback announcement is important for two reasons: 1) it signifies to the Street that management believes the shares are undervalued (choosing buyback instead of dividend) and 2) coincides with the structural changes occurring in the memory industry and at Micron. ********************************************************************************************************************** I am still skeptical they will actually buy back 15% of their outstanding shares if they go to $80 or $90/share. All of the calculus changes dramatically when compared to $55-$60/share. Needham also upgraded them to 'Strong Buy'. Hopefully, we can get WDC on the launch pad next. UWG

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