Micron: This Is Absurd by Quad 7 Capital of Seeking Alpha.
In our opinion, what we are seeing is absurd and temporary. With the present valuation, coming share repurchases, and Chinese sales fears being overblown, we think the stock should easily trade back above $50. With earnings due out in a few weeks…Using our super-conservative valuation, there’s at least 21% upside. In our opinion, Micron stock could be good for a trade, but also makes for an ideal medium-term investment.
Just an opinion of an opportunistic trader. For investors, do your own DD, don’t be influenced by traders.
The stock is still in a longer-term uptrend, but the last few months have had a bearish bias. In the near term, we have highlighted $46 as a strong line of support, and it’s being challenged today heavily with shares well under this mark. From here the next level of interest is $42.90. This is a level we would be heavy buyers. Finally, $37.50 is the last level of support which we do not believe will be breached should the fundamentals hold up.
Everybody can see $37.50 is unlikely to be breached and might not be there.
Sound like he plans a multi-month trade, buy at $42.90, stop below $37.50, sell above $50.
He is willing to take a potential 15% loss to gain a potential 30%