Why Micron (MU) Is Up Today

NEW YORK (TheStreet) -- Micron Technology (MU) rose 1.3% to $23.21 Monday as the chipmaker announced a repurchase of convertible debt.

In a press release, Micron said it repurchased about $26 million in aggregate principal amount of its $1.875% Convertible Senior Notes due 2013 for $64 million in cash. The company also repurchased about $100 million in aggregate principal amount of its 2.375% Convertible Senior Notes due for $249 million in cash, and about $38 million in aggregate principal amount of its 3.125% Convertible Senior Notes due 2032 for $93 million in cash. All repurchases will complete by Jan. 28, 2014, according to the company.

The repurchases "reduced the dilutive effect of our existing convertible notes," Micron vice president and CFO Ron Foster said. "We eliminated approximately 10 million shares from our current dilutive share count, assuming a $23 stock price, and reduced the outstanding principal amount of our debt by approximately $164 million. Since last November, we have reduced the dilutive effects of our convertible notes by approximately 52 million shares based on a $23 stock price."

TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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