Micron Stock Alert
Added 2021-04-30 18:38:28 +0000 UTCHey Patreons, I want you to take a look into Micron Technologies ($MU). Micron Technology (MU), is a $100 billion global semiconductor company with a market share of 4.7%, generating revenues of $22.04 billion per year. While it is true that Micron doubled its valuation in 6 months, I think it is still undervalued relative to its competitors and its potential.
Micron has an impressive 41% EBITDA margin, and a 13.5% net income margin, which I find very attractive. It had a revenue growth of 20% this year and a 21% EBITDA growth as well, which is very impressive for a $100 billion company.
With P/E GAAP ratio of 31, as well as EV/Sales ratio of 4 and a 10 ratio of EV/EBITDA, this company seems to be trading at lower prices vs every single competitor in this market.
The stock is currently at $85 and I believe we will see a price of $120 by end of 2022.
Since 2017, the company is managed by Sanjay Mehrotra, who was the co-founder of SadDisk where he was the CEO until its acquisition by WD in 2016. Though MU is not one of the bigger players in this market, they have a strong history of creating innovative products. It owns over 20,000 patents; many of these are for industry “firsts” and I think their fundamentals warrant a closer look.
Please note that as with ANY post or video I make this is NOT financial advice and strictly my opinion and may be totally wrong. Do your own research please. Note that past performance is not a guarantee of future results. Don't assume an investment will continue to do well in the future simply because it's done well in the past. This is strictly my opinion, so do your own research and make up your own mind. This is not financial advice, just entertainment, so be careful!
Comments
I was in MU past 3 months tying up money that could have gone to NVIDIA or AMD. This makes me feel better
Jaime
2021-05-03 00:18:08 +0000 UTCThank you, Tom. I am new to trading and understanding all of this stuff.. Your breakdown can help me help myself in looking for opportunities in future.. Also your honestly and willing to share I'm am really grateful for 🙏
Liqa Gondal
2021-05-01 17:18:47 +0000 UTCIs ther DCF excel sheet availble on this one ?
bart rondeltap
2021-05-01 11:23:08 +0000 UTCI wonder what's Tom opinion on leaps.
Ivan Alberto
2021-05-01 09:36:00 +0000 UTCBut seriously, leaps provide the right amount of exposure for a small amount of money today.
Ivan Alberto
2021-05-01 09:33:58 +0000 UTCLike going to a casino, but you still have a big chance of making some money out of your bet.
Ivan Alberto
2021-05-01 09:29:43 +0000 UTCTom, you’re right that AI and Cloud computing will have huge demand but consider this scenario; right now, the ability for micron to sell more chips is also dependent on systems which need memory to ship. If there other component shortages, nothing ships and there’s no need for memory. Also, semiconductor often goes through a boom and bust cycle. This happens when new foundry investments come online and under supply becomes over supply. DRAM/NAND, being commodities, are easily substituted by other vendors. Always watch the elephant in that field which is Samsung who has over 40% market share.
Derek Chew
2021-05-01 07:59:54 +0000 UTChttps://www.youtube.com/results?search_query=how+to+play+leaps+options
Tom Deschenes
2021-05-01 05:31:55 +0000 UTCI also added Leaps
Tom Deschenes
2021-05-01 05:18:47 +0000 UTCHave you been reading my share tracking Excel Sheet? I love the fact that you are confirming many of my holdings as I have not really done enough work in advance and lack confidence. Each time you validate like this for me, it drives my confidence to a new level. No one should invest alone. (My opinion which may be wrong, May be the Ramblings of a Mad Man, Bla Bla F<^&ng Bla)
Tom Deschenes
2021-05-01 05:17:32 +0000 UTCI think memory will be in huge demand as AI cloud applications and self driving features will roll out
Generico Fakero
2021-05-01 03:31:28 +0000 UTCTom, not sure if you’re aware of this, but Micron main product, DRAM/NAND flash are commodities. Their market price is directly tied to the spot market price. With the current semiconductor shortage, it’s unknown which way the spot market price will go.
Derek Chew
2021-05-01 02:51:40 +0000 UTCCan you explain strategy with leaps?
Danny Eckert
2021-04-30 19:33:58 +0000 UTCThanks Tom for the heads up!💰
John Collins
2021-04-30 19:03:49 +0000 UTCThanks, Tom. Going to jump on this with 2023 leaps.
Ivan Alberto
2021-04-30 18:47:41 +0000 UTCSadDisk 😂👍Thanks for the advice Tom, love these rather unsexy powerhouse companies
Christofire The Burning Man
2021-04-30 18:44:49 +0000 UTC
