Actionable news
0
All posts from Actionable news
Actionable news in MU: Micron Technology, Inc.,

Adding Micron To The Elevation Portfolio

Summary

I see Micron making big gains in the DRAM market in 2016 and 2017.

A quick transition to lower nodes will lower costs, improve margins and increase market share.

I believe the Nasdaq will keep on charging ahead, and sooner or later Micron will follow suit.

We are buying 500 shares of Micron today.

Western Digital (NASDAQ:WDC) is the weakest position in our portfolio at the moment. Initially, we bought 100 shares at just over $46 a share a few short months ago, but as I write this the stock is trading slightly over $35 a share. I still feel as if this stock is heavily undervalued -- especially after the recent SanDisk acquisition, which went through for around $19 billion. While this acquisition has been looked at as bearish in some investors' eyes, I feel as if multiple synergies will eventually come out of the new setup. Why? Market share is one obvious benefit as consolidation continues to grip this industry, but another is cost synergies, which should enable the partnership to gain even more market share over time.

We could double down on Western Digital, as I believe this stock might easily bounce back to the $60-plus level. But I'm going to go with a different company to play the current downturn among stocks in this sector. That company is Micron (NASDAQ:MU), and what follows are three reasons why I like this stock right now.

First, I like the moves Micron is making in the DRAM area -- especially its recent Inotera acquisition...


More