Stock Alert for Satcon Technology Corp. (SATC)
  • Stock Alert for Micro Imaging Technology Inc. (MMTC)
  • Alternative Energy Trade Option: Energy Conversion Devices Inc. (ENER) Review
  • " />

    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.

    Share Statistics (26-Mar-12)   FY












    Symbol MU Revenue, $Mn 8482.00 8788.00 3.61% 2257.00 2067.00 -8.42%
    Current price $8.25 Gross marg. 32.00% 20.00% -37.50% 19.27% 13.00% -32.54%
    52wk Range: $3.97-$11.89 Oper. margin 8.59% -7.16%
    Avg Vol (3m): 30,592,000 Net margin 21.81% 1.90% -91.29% 3.19% -10.84% -439.81%
    Market Cap. 8.11B              
    Shares Outstanding 982.80M EPS, $ 1.57 -0.06 -103.82% 0.02 -0.22 -1200.00%

    Source:, SEC Filings.

    Investment Highlights

    Shares in MU slipped 1.79% to close Monday trade at $8.25, with nearly 36 million shares traded.  Over the last 52 weeks, the stock has ranged from a low of $3.97 to a high of $11.89.

    MU shares have dropped 4.4% in the last five trading days; though the stock gained 3.8% in the last month.  Year-to-date, the stock is down 28.6%.

    MU saw a spike earlier this month after the semiconductor technology company, together with Xilinx Inc. (NASDAQ: XLNX), announced the first public hardware demonstration of an FPGA interfacing with RLDRAM 3 memory, a new and emerging memory standard for high-end networking applications such as packet buffering and inspection, linked lists and lookup tables.

    According to Derek Curd, technical marketing manager at Xilinx, the new RLDRAM 3 interface is ideal for Xilinx and MU’s mutual customers in the high-end networking space who require higher speed, higher density, lower power and lower latency. “The RLDRAM 3 hardware demonstration shows how we’re able to achieve a much more efficient transfer of network data.”

    “Xilinx has been a longtime partner of Micron, going back to the early definition efforts of RLDRAM 3 memory,” stated Robert Feurle, vice president of Micron’s DRAM marketing. “Together, we welcome the ability to demonstrate and deliver performance advantages of RLDRAM 3 with the latest Virtex-7 and Kintex-7 families.”

    MU also recently announced that it has developed a 2.5-inch enterprise solid-state drive (SSD) based on a PCIe interface. The solution combines a high-performance PCIe interface with a hot-swappable 2.5-inch form factor that creates new options for enterprise server performance scalability and serviceability.


    Financial Summary

    MU reported net sales of $2.1 billion for its second quarter of fiscal 2012, compared to net sales of $2.1 billion for the first quarter of fiscal 2012, and net sales of $2.3 billion for the second quarter of fiscal 2011.

    The Company’s consolidated gross margin dropped to 13% in the second quarter of fiscal 2012, compared to 15% for the first quarter of fiscal 2012, due primarily to declines in gross margins for the Company’s NOR Flash products in the wireless market. Sales of NOR Flash products were about11% of total net sales for the second quarter of fiscal 2012.

    MU realized a net loss of $224 million, or $0.23 per diluted share, for the latest reported quarter, which compares to a net loss of $187 million, or $0.19 per diluted share, for the first quarter of fiscal 2012, and net income of $72 million, or $0.07 per diluted share, for the second quarter of fiscal 2011.

    Cash flows from operations for the second quarter of fiscal 2012 were $574 million. During the second quarter of fiscal 2012, the Company invested approximately $429 million in capital expenditures. MU ended the second quarter with cash and short-term investments of $2.1 billion.


    Financial Strength (26-Mar-2012)




    Quick Ratio (MRQ) 2.64 0.99
    Current Ratio (MRQ) 3.23 2.75
    LT Debt to Equity (MRQ) 23.40 10.77
    Total Debt to Equity (MRQ) 46.00 19.96
    Interest Coverage (TTM) 6.07 1.19

    Source:, SEC Filings.

    Technical Analysis


    MU is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    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 9minute 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
    Mar26-2012 symbol Share, $ $ Mn 2012 2013 2012 2013
    SanDisk Corp. SNDK 50.52 12.25B 10.77 9.24 1.9 1.62
    Spansion Inc. CODE 12.41 743.61M 15.51 7.71 0.77 0.72
    Semiconductor – Memory Chips Median       12.23 n/a 1.59 n/a
    Micron Technology Inc. MU 8.25 8.11B n/a 14.22 0.95 0.84

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *