MU
Micron Technology Inc
TMT
06/12/2015
Presented
| Date | 06/09/2015 |
| Price | $25.19 |
| Market Cap | N/A |
| Ent Value | $30.35B |
| P/E Ratio | 7.7x |
| Book Value | $11.57 |
| Div Yield | N/A |
| Shares O/S | 1,081.52M |
| Ave Daily Vol | 22,370,000 |
| Short Int | 6.08% |
Current
| Price | $104.32 |
| Market Cap | $115.66B |
| Micron Technology, Inc., together with its subsidiaries, provides semiconductor solutions worldwide. The company manufactures and markets dynamic random access memory (DRAM), NAND flash, and NOR flash memory products; and packaging solutions and semiconductor systems. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. The company offers DRAM products for data storage and retrieval, including DDR4, DDR3, and DDR2 that offer high speed and high bandwidth; reduced latency DRAM products that offer lower power consumption relative to other DRAM products; and other DRAM products to specialty markets, such as DDR2 DRAM, DDR DRAM, GDDR5 DRAM, SDRAM, reduced latency DRAM, and pseudo-static DRAM products that are used in networking devices, servers, consumer electronics, communications equipment, computer peripherals, and automotive and industrial applications, as well as computer memory upgrades. It also provides NAND flash memory products, such as flash memory cards comprising CompactFlash, Memory Stick, and Secure Digital; and JumpDrive products that are used in mobile phones, solid-state drives, tablets, computers, industrial and automotive applications, and other personal and consumer applications. In addition, the company resells flash memory products that are purchased from other NAND flash suppliers. Further, it provides NOR flash memory products that are electrically re-writeable, non-volatile semiconductor memory devices used in consumer electronics, industrial, wired and wireless communications, computing, and automotive applications. The company markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors; and through a Web-based customer direct sales channel, and channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho. |
Publicly traded companies mentioned herein: Intel Corp (INTC), Micron (MU), Samsung Electronics Co Ltd (005930 KS), SanDisk Corp (SNDK)
Highlights
The presenter is short shares of Micron (MU), and expects DRAM supply to greatly outpace demand over the next year due to lower than expected demand from PC and smartphones. The presenter thinks DRAM margins are at cyclical peaks and will soon see a return to normalized levels. Depending on how much DRAM pricing degradation takes place, the presenter models a range of outcomes for MU with a $20 “base case.” Tailwinds like 3D NAND and a revival of the PC business with Windows 10 are “too far out” to address near term headwinds.
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