Micron Technology (MU)

[JLS]

MU has a problem.

MU only has one product: all they sell is various grades of SS memory and memory systems, AKA commodities. Their only leverage advantage is any lead they can obtain in the technology. Patents on their technologies helps because they can get licensing fees.

Gravel quarries have some of the same problems: all they sell is various grades of rock, gravel, and sand (rock-based commodities). Their only advantage is to have customers near their quarries. There is nothing they can patent, and their trucks are lucky to get 7_mpg.

Difference between AMD and MU:

AMD has a much broader product range than MU and sells a variety of microprocessors and gaming chips and related systems and software. In fact, AMD may even purchase some of MU's memory chips and modules and place them on some of AMD's system boards.

So ... that's why I have written that MU would be much better off NOT buying back their own stock; and, instead, use that money to purchase another chip company for the purpose of broadening their product base. In other words, diversify to expand customer base; and gain additional efficiency by eliminating duplicate functions of the two separate businesses. Then MU would not suffer from the stigma and cyclicality of being a memory-only company.