Boston, MA 10\/14\/2013 (wallstreetpr) – Micron Technology, Inc. (NASDAQ:MU)<\/b> <\/b>shares fell more than 8% Friday on profit taking and issues related to the impact of its acquisition of Elpida Memory in the long term.<\/p>\n
Micron has everything going for it. The fourth quarter results were far better than what analysts were predicting, coming on the heels of seven consecutive quarters of losses. Micron reported a profit of $1.71 billion – $1.51 per share compared to a loss of $243 million – $0.24 per share for the same period last year, and the revenues rose to $2.84 billion from $1.96 billion. Analysts had been predicting a profit of $0.24 per share on revenues of $2.7 billion. The company had reported revenues of $8.23 billion last year with a net loss of $1.03 billion.<\/p>\n
It recently announced the acquisition of Elpida Memory, making it the second largest memory manufacturer after Samsung in the world. This also contributed to a one time gain in profits this quarter of $1.31 per share. The company is now a very strong player in the DRAM sector. DRAM prices are higher this year due to strong demand. Its rival, Hynix, suffered from a fire last month in one of its factories in China and production is expected to remain affected till at least November’s end. Total global supply is expected to fall and Micron is on the right track to take advantage of the resultant price rise. NAND prices, however, are lower. NAND processors are used primarily in mobiles and smart phones, while DRAM processors are used in PCs and laptops.<\/p>\n
Analysts blame the sell of on profit booking by investors who have been riding the upward rise for too long. Micron\u2019s shares have risen by more than 165% year-to-date and by more than 30% in the last three months. There is also a lack of clarity on the effect of Elpida\u2019s acquisition on earnings and cash flow projections.<\/p>\n
Investors should look at this correction as an opportunity to pick up this stock.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/14\/2013 (wallstreetpr) – Micron Technology, Inc. (NASDAQ:MU) shares fell more than 8% Friday on profit taking and issues related to the impact of […]<\/p>\n","protected":false},"author":10,"featured_media":9977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[2674,3303,2675],"stock_ticker":[],"class_list":["post-9975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-micron-technology-inc-nasdaqmu","tag-mu","tag-nasdaqmu","entry"],"acf":[],"yoast_head":"\n