I haven't seen $MU being mentioned here in a while. Apparently, momentum investors have lost interest and value investors haven't woken up yet, or there aren't too many of them here.
So, fundamentally the stock is valued at a ridiculously low level (P/E about 3, p/b 1.3). Even the most bearish analysts aren't expecting EPS to drop too much in the next trough, even if it halved or more, the stock would still be cheap at these valuations. It's as if all the worst case scenarios are already baked in as certainties (china competition, tariffs, tech crash, recession etc., biggest cyclical trough in dram and nand ever).
Btw, this stock has given analysts some good opportunities to quit their jobs. First they target 80-100 when the stock is at 65, then AFTER the stock drops to 35, they target 32. FFS, keep your targets, fundamentals or the outlook haven't changed, only the market sentiment has gone bonkers, and you don't need to make yourself look like a complete idiot by following suit. These fu**s say "strong sell" because "the stock could drop another 10%", while completely forgetting the upside or the ridiculously low valuation.
I'm increasing my position on this stock every time it drops more, tell me some reasons why I shouldn't. Investment horizon is long, of course.
Submitted November 28, 2018 at 06:53AM by abrahamlincoln20 https://ift.tt/2FUNG2u
