Trade-Ideas LLC identified

Micron Technology

(

MU

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Micron Technology as such a stock due to the following factors:

  • MU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $448.1 million.
  • MU has traded 1.1 million shares today.
  • MU is up 4.5% today.
  • MU was down 7.4% yesterday.

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More details on MU:

Micron Technology, Inc. provides semiconductor systems worldwide. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. MU has a PE ratio of 15. Currently there are 15 analysts that rate Micron Technology a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Micron Technology has been 26.5 million shares per day over the past 30 days. Micron Technology has a market cap of $14.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.72 and a short float of 6.1% with 1.82 days to cover. Shares are down 6.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Micron Technology as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • 46.11% is the gross profit margin for MICRON TECHNOLOGY INC which we consider to be strong. Regardless of MU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MU's net profit margin of -3.30% significantly underperformed when compared to the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $763.00 million or 39.00% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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