Williams Financial Group Comments on Micron's (MU) Recent Acquisitions: When Shares Settle, There May Be Buying Opportunity
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Price: $11.31 +2.26%
Rating Summary:
16 Buy, 10 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
16 Buy, 10 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade MU Now!
Williams Financial Group comments on Micron's (NYSE: MU) recent acquisition of Elpida.
Analyst, Cody G. Acree, said, "While we have never been fans of trying to time the short-term volatile swings of the commodity memory market, we do believe Micron’s purchase of Elpida and the likely merging of the Inotera and Rexchip production facilities could bring at least short-term supply stabilization that should be a positive catalyst for memory prices and allow MU to recover from four straight quarters of losses."
"Overall the DRAM market is slowly recovering, likely to be up low-single digits this year, after declining 25% in 2011, largely on steep pricing declines. With consolidation typically come more rational supply and pricing, at least for the intermediate term. While MU’s shares have bounced nicely off the bottom, we believe there is still significant upside; particularly given the stock was nearly $9 just back in March."
All in, Acree suggests once the news settles down and investors look at the slowing trends, there might be an opportunity to jump in when/if shares pullback.
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Analyst, Cody G. Acree, said, "While we have never been fans of trying to time the short-term volatile swings of the commodity memory market, we do believe Micron’s purchase of Elpida and the likely merging of the Inotera and Rexchip production facilities could bring at least short-term supply stabilization that should be a positive catalyst for memory prices and allow MU to recover from four straight quarters of losses."
"Overall the DRAM market is slowly recovering, likely to be up low-single digits this year, after declining 25% in 2011, largely on steep pricing declines. With consolidation typically come more rational supply and pricing, at least for the intermediate term. While MU’s shares have bounced nicely off the bottom, we believe there is still significant upside; particularly given the stock was nearly $9 just back in March."
All in, Acree suggests once the news settles down and investors look at the slowing trends, there might be an opportunity to jump in when/if shares pullback.
To see more ratings on MU, Click Here
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