Last night, computer memory expert Micron
The current star performer in Micron's product portfolio is its line of camera sensor chips. This segment doubled sales from the previous year, which works out to about $800 million in revenues out of the $5.27 billion in total sales for the year. Not too shabby, and Micron looks well positioned against competitors like Pixelplus
But fancy flash memory and camera chips aside, Micron's bread and butter is still boring old computer memory. Despite management's "diversification strategy," DDR memory still makes up about half of the company's sales. Even with the Lexar consumer brand on hand, Micron is still a far cry from the SanDisk
Finally, if it looks like Wall Street took a wild swing at the annual target and missed by about $0.30, do what they did and back out the gains from Micron's $230 million sale of its NAND flash patent portfolio to Intel
So would I buy Micron today? I don't think so. The 13% haircut it took today makes the value proposition slightly less ridiculous, but back out that one-time flash technology sale and you get a stock trading at about 63 times trailing earnings. That's hardly what I call a bargain, right up there in Google
- If SanDisk is dropping because of the MRAM news, the market is crazier than we think.
- Check out the Foolish Forecast for these results.
- Let's find the next 60-bagger.
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