Check out Fleck's comments on MU. Very funny (and I also agree with everything he says):
<From tonight's Market Rap>
"Micron shows strength... The Sox index was the strongest, up about 5 percent. There was a complete panic to buy chip stocks. Don't ask me why - it was just the flavor of the day. But the lead sled dog in that area, Micron (MU), was up in the early going and that dragged along Texas Instruments (TXI) and a few of the others. Since the market leadership has gotten narrower and narrower, whenever some group gets hot, all the day traders come flying into them. Then the moves get exaggerated, be it retailers, airlines, chip stocks, you name it. I always figure when Micron's up, it proves pigs can fly. Anything can happen in chip land when Micron's up, especially when fundamentals are as bad as they are.
It's humorous to note that the two-day bounce of about 10 cents that we saw in DRAM parts on the back of Micron's successful complaint to the Commerce Department about Taiwan chip dumping has already evaporated. The spot market for parts is back to $5. But with that stock the facts only matter intermittently, and half the time it is driven by hormones or an Ouija board or who knows what else. There will always be some lunatics who think that the price of DRAMs magically will go back up. But the one thing about memory prices is, they collapse, they've always collapsed and they always will. Micron will be lucky if it can stay in business over the next couple of years, in my opinion."
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Great stuff!!!
Regards,
Robert |
