Well.... Mr. Market is in a depressed mood today, especially concerning Micron Technology (MU).
Let's look at MU's PE. It is a low 5.45. Now if earnings drop by 1/2, it is still selling at a 10.9 PE which is way less than the market. It is at the low end of its PE for the last 10 years. Good margin of safety.
MU's Long-term debt to capitalization is a little high at 29.5 from their norm, but it has decreased from 35.6 in the previous year. While higher, it is not excessive for a company in their business.
Sales in 2017 are 20.3B versus 12.4B in the previous year. That is a 64% increase and more than double 5 years ago.
Memory, their primary business, is still growing in this current environment. AI and machine learning demands memory that is both fast and advanced. I believe, even with a market downturn, AI and machine learning still has a number of years of solid growth. Add the multiple other products that demand gobs of memory and you have a growing business.
The general market seems to have lost its upward momentum. This is good from my perspective, because now investors (not speculators) can find some decent values. I don't mind waiting which isn't common among the institutional "investors" - a sweet spot for individuals to take advantage of.
"Memories" are what all of us covet!
