Replies to post #3388 on Micron Technology (MU)

[JLS]

Forward-looking market.

I think it's because investors are thinking that the memory market has bottomed so the future for Micron at its current stock price is flat to up, and they don't want to be late and pay too much for the stock later.

So longer term holders are willing to buy the stock and hold it from here wile traders -- believing that a sustained upward move may be a quarter or two in the future -- are more willing to trade it. If this is true then expect MU to trade within a flat channel for a few (to several) months before trending higher.

It could be worse: in prior cycles MU would operate with losses during memory cycle minimums, but this time it appears they will continue to make significant profits during the cycle low. I think that is due to the high sophistication of the technology and the lack of capable competitors that results from that level of sophistication (and patent coverage).

[JLS]

More news out re. MU ...

U.S. Deploys New Tactics in Prosecution of Chinese Chipmaker

Prosecutors are also testing for the first time a provision of the Economic Espionage Act dating back to 1996 to bring a civil suit alleging trade-secret theft on top of the criminal indictment. Through the civil case, the government is aiming to block Jinhua’s exports of dynamic random access memory, or DRAM, that the U.S. says relies on technology stolen from Boise, Idaho-based Micron Technology Inc.

From the criminal case, prosecutors stand to win an order requiring Jinhua and UMC to forfeit chips and income derived from the allegedly stolen technology, as well as a ban from using Micron’s secrets for up to five years.

Micron spent almost a year trying to serve a civil trade-secrets complaint against Jinhua. A copy sent to the Chinese Ministry of Justice was returned stating, without further elaboration, that “the Chinese translation is not complete.” Chesney concluded Micron can simply email the complaint to Jinhua’s U.S. lawyers.

https://finance.yahoo.com/news/u-deploys-tactics-prosecution-chinese-050100608.html