Tech Stock on Fire and Showing No Signs of Cooling

by Sam Collins | June 27, 2013 1:34 am

Tech Stock on Fire and Showing No Signs of Cooling

Micron Technology (MU[1]) — This stock was first recommended[2] on March 25, at $10.01, when I said, “with momentum high, this stock should eventually meet analysts’ target of $14.”

Then, on June 7[3], with the stock at $12.56, I said, “Micron rose 2.75% [on June 6], making it one of the best performers of the S&P 500 stocks. This was no doubt due to a Stifel Nicolaus analyst reiterating a ‘buy’ rating and raising his price target from $14 to $16 due to better prices for DRAM and NAND flash products, which are the core of Micron’s business. It was noted that these prices will probably continue to rise through 2014.

“The stock has accelerated its advance, and the trading target is now increased from $14 to $16-plus.”

On June 19, MU reported fiscal Q3 results that were well above expectations, and the company issued stronger guidance for fiscal Q4. Third-quarter revenue came in at $2.3 billion versus estimates of $2.25 billion. This resulted in analysts raising earnings and price estimates, with the highest price target now at $21.

On Wednesday, MU broke from a seven-session consolidation to a new high. The consolidation took place during the worst sell-off in stocks this year, and when pressure subsided, the stock jumped again on high volume.

The trading target for MU is now increased from $16 to $20. Long-term buyers could see much higher returns over the next year.

06 27 13 mu 300x191 Tech Stock on Fire and Showing No Signs of Cooling
Click to Enlarge

chart key 300x84 Tech Stock on Fire and Showing No Signs of Cooling[4]

Endnotes:
  1. MU: http://studio-5.financialcontent.com/investplace/quote?Symbol=MU
  2. first recommended: http://investorplace.com/2013/03/trade-of-the-day-micron-technology-nasdaq-mu-3/
  3. on June 7: http://investorplace.com/2013/06/trade-of-the-day-micron-technology-mu/
  4. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/06/trade-of-the-day-micron-technology-mu-2/
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