Again, analyst pumping more air into the balloon.
Carl R:
An analyst made comments on MU this morning which doesn't make sense. She said that demand will continue into the 1st quarter, but in the earnings report, net sales dropped 17.1%, which confirms that these analyst are hyping again. Another fact: Saloman Smith Barney bought 286,900 shares @ 53 on Monday. Today, they have sold them at 64 3/4, a profit of 11 3/4 pts., I know because I watch every trade and an article came out stating they sold them. Saloman probably figured that there would be a major short squeeze due to the momentum going into this week, also I have noticed a trend, analysts are making many comments on the Semi companies since mid Nov. The SOX index was getting tired, so they needed to make more noise to keep it going. If you think about it, MU hasn't made any comments during this whole time other than the earnings report, which was a disappointment when they were so optimistic.
It is very interesting that Abby Cohen(market guru) has reduced her exposure in equities and also said she remains bullish. She needed to say the second comment so the market doesn't drop as she is selling into the momentum. To everybody, this should be a red flag meaning the market is overpriced and now is the time to take the money off the table (start selling).
Price-to-cash flow is at an all time high of 43.9x (very overvalued). Back in 1995 (their best year), the high was 19x.
When the bubble bursts, it will not be pretty. |
