Boston, MA 01/15/2013 (wallstreetpr) – Micron Technology, Inc. (NASDAQ:MU), which had an impressive run in 2013, did not disappoint when it issued its fiscal 2014 first quarter. The company comes across as the perfect semiconductor and memory stock today. But even under these impressive profitability and valuation metrics, investors should know how to play this stock.
What is known is that Micron Technology, Inc. (NASDAQ:MU) is rising in the advantage of the bullish memory market. This bullish environment is contributed by high demand and short supply, especially due to some competitors’ production being affected due to factor incidents. That being said, we can expect negative reaction to the stock if competitors begin to get their production back in order.
Furthermore, a look at the stock of Micron Technology, Inc. (NASDAQ:MU) suggest that it remained volatile in 2013, rising and falling sharply on industry news. The same trend is expected this year as a lot of industry announcement come. In particular, reopening of SK Hynix’s Wuxi factor which was affected by fire last year would bring pressure on the stock, causing it to roll back.
Playing MU
Now that we are aware of what awaits Micron Technology, Inc. (NASDAQ:MU), investors are wise to sell a portion of their holding in this company when the price is still strong. Those who acquired the stock at around $8 in March 2013 would be at ease to take advantage of the current price of about $23 in order make profit and also adjust holding to reduce risks exposure.
Investors who make this offload at the current price would obviously have another opportunity to buy the stock when prices drop on the impending reopening of rival factories.
Potential impact
As mentioned earlier, the stock of Micron Technology, Inc. (NASDAQ:MU) will be impacted negatively by reopening of Wuxi fab as this will lead to surplus condition in the market. Moreover, SanDisk and Samsung (OTC: SSNLF) could also cause upset for Micron Technology, Inc. (NASDAQ:MU) if they boost their NAND and DRAM production, respectively.
