Position 1200 shares of MU $464; 100 shares of MU $381
I called it last Thursday that MU will benefit from wdc/sndk post earnings drop (since recovered) as more and more investors rotate into MU. I got good news, MU is just heating up. MU has been the victim of an inefficient market that has consistently priced MU as a cyclical stock worthy of a pe of 4-5 while ignoring the impact of the ai super cycle, the data center buildouts, capex increases, and most importantly severe memory shortages that have impacted all of the major ai players to the benefit of MU.
The MU post earnings 33% drop after one of the top 10 historically amazing earnings/guidance perfectly illustrates the irrational mispricing compounded by equally irrational negative narratives the media tried to spin (eg somehow spinning mu paying off debt as a negative while spinning sk diluting shareholders to issue new stocks as a positive for sk and a negative for mu). While the market can’t be irrational forever, and when the market finally realized that mu has been the gem of memory stocks, the rip has been equally if not more so violent.
Market is finally waking up, institutions are moving money into mu, quants that shorted mu are silently unwinding, retail is almost always late to the party but it’s not too late right now to jump on the mu train. We are in the top of the 3rd inning and mu has a long way to go. I don’t know about mu $5000 like some of yall are chanting but MU $1500 by eoy is certainly game. Are you in or are you going to watch this ride and complain two years down the road about missing another opportunity.