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    Stock Alert for Micron Technology Inc. (MU)

    Micron Technology Inc. (MU) is a provider of advanced semiconductor solutions. Through its worldwide operations, MU manufactures and markets a full range of DRAM, NAND Flash and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, embedded and mobile products.

    The Company incorporated in 1978 and is headquartered in Boise, Idaho.

    Share Statistics (03-Jan-11) FY

    2009

    FY

    2010

    %

    Chg

    Q4

    2009

    Q4

    2010

    %

    Chg

    Symbol MU Revenue, $Mn 4,803 8,482 76.6% 1,740 2,252 29.4%
    Current price $8.28 Gross marg. -9.2% 32.0% -447.8% 25.5% 23.3% -8.6%
    52wk Range: $6.36-$11.40 Oper. margin 18.7% 17.3%
    Avg Vol (3m): 31,863,300 Net margin -39.1% 21.8% -155.8% 11.7% 6.9% -41.0%
    Market Cap. 8.24B
    Shares Outstanding 996.25M EPS, $ -2.27 1.55 -168.3% 0.45 -0.01 -102.2%

    Source: Reuters.com, SEC Filings.

    Financial Summary

    For the first quarter, MU had a net income of $155 million, or $0.15 per diluted share, on net sales of $2.3 billion. The results for the first quarter of fiscal 2011 compare to net income of $342 million, or $0.32 per diluted share, on net sales of $2.5 billion for the fourth quarter of fiscal 2010, and net income of $204 million, or $0.23 per diluted share, on net sales of $1.7 billion for the first quarter of fiscal 2010.

    In the Company’s Memory segment (which excludes Numonyx and other non-reportable segments), revenue from sales of DRAM products was 19% lower in the first quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010 due to a 23% decrease in average selling prices partially offset by a 5% increase in unit sales volume. Revenue from sales of NAND Flash products was up slightly in the first quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010 due to a 20% increase in unit sales volume partially offset by a 15% decrease in average selling prices. The Company’s gross margin for its Memory segment was 26% in the first quarter of fiscal 2011 compared to 37% in the fourth quarter of fiscal 2010, primarily due to the decreases in average selling prices, partially offset by decreases in manufacturing costs.

    Cash flows from operations for the first quarter of fiscal 2011 were $732 million. During the quarter, the Company invested approximately $570 million in capital expenditures and spent $635 million to retire debt. MU ended the fiscal quarter with cash and investments of $2.4 billion.

    Source: www.micron.com.


    Financial Strength (03-Jan-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.41 0.56 1.15 0.66
    Current Ratio (MRQ) 2.10 0.68 2.22 0.98
    LT Debt to Equity (MRQ) 16.39 5.72 14.65 119.72
    Total Debt to Equity (MRQ) 22.08 10.72 23.09 175.56
    Interest Coverage (TTM) -3.40 3.09 1.48 16.62

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 24 polled investment analysts. Against the Micron Technology Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 7 6 9 1 1 2
    4 weeks ago 7 6 9 1 1 2
    2 months ago 8 7 8 1 0 2
    3 months ago 8 7 8 1 0 2
    Last year 8 5 5 1 0 1

    The 22 analysts offering 12-month price targets for MU have a median target of 9.50, with a high estimate of 18.00 and a low estimate of 6.30. The median estimate represents a 18.45% increase from the last price of 8.02.

    Source: markets.ft.com

    Consensus Estimates Analysis


    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Feb-11 23 2,215.80 2,532.71 1,883.10 1,747.92
    Quarter Ending May-11 22 2,301.36 2,576.23 2,016.70 1,809.14
    Year Ending Aug-11 24 9,372.13 10,243.00 8,374.70 7,213.25
    Year Ending Aug-12 18 9,721.59 11,802.00 3,938.00 6,771.25
    EARNINGS (per share)
    Quarter Ending Feb-11 22 0.22 0.44 0.08 0.12
    Quarter Ending May-11 22 0.26 0.39 0.13 0.18
    Year Ending Aug-11 25 1.05 1.93 0.40 0.68
    Year Ending Aug-12 19 1.22 2.25 0.59 -0.22
    LT Growth Rate (%) 5 7.40 15.00 -10.00 11.40

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=MU.O


    Investment Highlights

    MU is one of the world’s leading semiconductor companies. Through its worldwide operations, the Company manufactures and markets a full range of DRAM, NAND and NOR flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, embedded and mobile products.

    In the first quarter of fiscal 2011, the Company said it signed a 10-year patent cross-license agreement with Samsung Electronics Co. Ltd., under which Samsung agreed to pay the Company $275 million – with $200 million paid on October 8, 2010, $40 million due January 31, 2011, and $35 million due March 31, 2011. The license is a life-of-patents license for existing patents and applications, and a 10-year term license for all other patents.

    In December, the Company acquired Hewlett-Packard Company’s interest in TECH Semiconductor Singapore Pte. Ltd.,a consolidated joint venture of the company, for $38 million. As a result, the Company’s ownership interest in TECH increased from approximately 87.1% to 90.3%.

    Recent News

    A Lazard Capital analyst recently reiterated a Hold rating on MU’s stock.  In a note to investors, the analyst said the stock could be stabilized by positive pricing and demand trends for NAND processors. MU’s share price jumped following the report.

    Latest Product News

    Micron subsidiary Lexar Media recently unveiled its new high-capacity Lexar Professional 133x SDXC Cards, which offer high-speed performance for capturing, storing, and managing extensive 1080p HD video.  The Lexar Professional 133x SDXC card is the first available in a 128GB capacity, and is also offered in a 64GB capacity.

    In December, MU unveiled a portfolio of high-capacity flash memory products that will lengthen the life of NAND for years to come. By integrating the error management techniques in the same NAND package, the new Micron® ClearNAND™ devices alleviate the challenges traditionally found in NAND process shrinks. MU’s ClearNAND portfolio extends the opportunities for more advanced NAND process generations to be used in enterprise servers, tablet PCs, portable media players, and dozens of other consumer applications.

    Source: www.micron.com

    Technical Analysis

    Source: http://stockcharts.com

    Thursday, MU closed above its 13-day moving average. This is generally considered to be an indication of a bullish trend.

    MU has been relatively stable recently. This is evidenced by the width of its Bollinger Bands, which are tighter than normal. Additionally, MU is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

    MU’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Jan03-2011 symbol Share, $ $ Mn 2010 2011 2010 2011
    SanDisk Corp. SNDK 51.24 12.02B 11.62 13.56 2.50 2.30
    Spansion Inc. CODE 21.26 1.26B 12.81 9.75 1.03 0.98
    Sony Corp. SNE 36.38 36.51B 51.97 19.56 0.43 0.42
    Integrated Silicon Solution Inc. ISSI 8.46 221.02M 6.46 6.46 0.80 0.78
    Semiconductor- Memory Chips Median 23.55 n/a 1.87 n/a
    Micron Technology Inc. MU $8.28 8.24B 15.33 7.74 0.93 0.83

    Source: Thomson Financial

    Insider Trading Activity

    NET SHARES PURCHASE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares Transaction
    Purchases n/a 0
    Sales 510,228 18
    Net Shares Purchased (Sold) (510,228) 18
    Total Insider Shares Held 138.44M n/a
    % Net Shares Purchased (Sold) (0.4%) n/a

    Net Institutional Purchases — Prior Qtr to Latest Qtr
    Shares
    Net Shares Purchased (Sold) (1,309,290)
    % Change in Institutional Shares Held (0.15%)

    Source: Yahoo Finance

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