NEW YORK ( TheStreet) -- The last time I talked about Micron (MU - Get Report), I argued its recent stock performance versus operational performance didn't jibe. I didn't believe Micron's management was getting the credit that it deserves.
The management team had remained a mystery despite the fact that the company's stock had doubled over the past six months -- posting gains of 150% since bottoming out at $5.16 last October. They had overcome the gloom seen when Micron's flash memory business was under pressure from the likes of SanDisk (SNDK) and Applied Materials (AMAT).
Plus, it didn't help that the personal computer market, which Micron relied upon to further its DRAM (dynamic random access memory) business, was on the decline. This is while the overall memory chip industry, which has become commoditized, began posting weak margins due to low average selling prices, or ASPs. Amid all of this turmoil, Micron managed to keep things together.
With such a strong recent track record, I recommended the stock ahead of the company's third-quarter earnings report. Investors who listened to me were risking some pretty significant gains by holding. But it's proven to be a excellent bet as Micron didn't disappoint. Revenue climbed 7% year over year and 12% sequentially.