10-18-2018, 07:38 PM
(10-18-2018, 04:32 PM)DividendGarden Wrote: Does anyone on Micron (MU)? It's at 4x earnings and 7x cash. Wondering if I'm missing something.
One of the few times I will say completely ignore the PE because the "E" part will likely change in 2019. Head on over to Seeking Alpha and other sites and listen to the bulls try to rationalize that it's surely different this time for MU and AMD. Then have a look at 20 year charts and decide for yourself. Semis and memory are highly cyclical and we are likely near the end of this cycle. It's always been boom and bust like oil. MU is a great company but if you believe the bulls argument then dip your toe in the pool lightly. MU is not going to run away from you IMO. When the cycle troughs you'd swear they are about to go out of business. CAPEX to enter market is huge so they won't. They aren't going away but it is usually painful to watch and the downturn is not brief.