Monday, January 4, 2010

Micron Technologies - MU

I needed to search of a new addition to my Marketocracy S&P 500 fund VMFIV. I used Barchart to screen the S&P 500 stocks that were presently exhibiting the highest relative strength and then used my normal screening criteria to come up with my pick. Micron Technologies -- MU was the strongest on my short list.

Micron Technology, Inc. has established itself as one of the leading worldwide providers of semiconductor memory solutions. The company's quality memory solutions serve customers in a variety of industries including computer and computer-peripheral manufacturing, consumer electronics, CAD/CAM, telecommunications, office automation, network and data processing, and graphics display. The company's mission is to be the most efficient and innovative global provider of semiconductor memory solutions.

On Barchart MU has hit 14 new highs in the last 20 trading sessions and is 4 out of 5 recently. The stock has enjoyed a 65 day price appreciation of 76.96% and is rated a buy on 12 of Barchart's 13 technical indicators for a 96% overall technical buy rating.

On a fundamental basis the stock has a wide Wall Street following and analysts estimate the stock will have an annual growth of 8.6% on sales and 136.8% on earning per share next year. 17 analysts have upgraded their EPS estimates in the last 30 days. Of the 10 brokerage firms following this stock 14 rate it a buy.

On other sites Wall Street Survivor members give a Sentiment rating of 5/5 and a fundamental rating of 5/5. Motley Fool CAPS members think the stock will beat the market with a vote of 608 to 109 with the All Stars in agreement 154 to 20. The Wall Street columnist Fool follows like to stock 19 to 0.

This stock meets my criteria:
  • The stock is hitting new highs in more than 50% of the recent sessions
  • If Wall Street follows the stock -- no trash talking
  • Other site seems to agree with my research.

I'm adding the stock to my Marketocracy S&P 500 model portfolio around 10.80 with a protective stop loss of not less than 8.25.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: no positions in MU at the time of publication

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