Acting on panic never helps investors, but it's still a good idea to question why you're really buying individual investments.
Consider chip maker Micron Technology
Here at the Motley Fool, we like to consider both the good and bad sides of an investment, so in this article, so I'm highlighting three of the main bearish arguments on Micron today. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Micron in CAPS.
1. Weakening chip market?
Even though the semiconductor market has been hot recently with big quarterly sales numbers being reported by companies such as chip manufacturing equipment maker Applied Materials
2. Slowing PC sales
Wall Street analysts have been warning of falling PC sales lately, leading to pressure in stocks along the PC supply chain such as Intel
3. Uncertainty looming
Micron's management further fanned investors' worries during its latest earnings conference call with its unenthusiastic outlook for DRAM production for the current quarter, leaving some investors guessing as to the strength of future earnings. With potentially slowing production growth taken together with the possibility of weakening prices, investors are keeping a close watch on things going forward.
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Fool contributor Dave Mock votes three to be the number of the day. He owns shares of Intel, which is an Inside Value recommendation. The Fool owns shares of and has written puts on Intel. Motley Fool Options has recommended buying calls on Intel. The Fool's disclosure policy is multicultural and loves to try new food.