Market Comments From TheStockMasters 4/5/2007

Posted: April 5, 2007 at 10:49 pm

Micron Technology (MU) is very close to a new 52-week low with shares trading at around $11.66 following a downgrade and a disappointing earnings call. Goldman Sachs changed their position to “sell” from “neutral” today.
Micron’s conference call reported lackluster earnings then gave some warm-fuzzy news about how they believe the memory card business is stabilizing. However, Goldman Sachs said Micron’s outlook is far too optimistic. So who do you believe, Micron or the analysts?
MU lost $52M, or 7 cents a share, in the three months ended March 1, compared to a year-ago profit of $193M, or 27 cents a share. Revenue did rise $1.43B which is up 16% from the $1.2B generated a year ago.
So with shares trading near the 52-week low, why not take the chance and assume Micron Executives are not full of it and pick up a few shares?
Citigroup analyst Glen Yeung lifted his target price target on Micron shares to $17 from $15.50. Yeung said that there is evidence that DRAM pricing has gone up slightly in recent weeks, as customers have begun using up their past product inventories, and that prices should remain stable in the second half of the year. 1-2-shabadoo people? Or 1-2-shabadon’t? We vote shabadoo!!
1-2-shabadoo!!!

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