Chipping Away at More Profits

Michael Shulman

There’s nothing like “chipping away” at more profits.

NAND flash memory chip stocks took a beating in 2018.

But the semiconductor chip sector rallied in mid-2019 with a strong run into the end of the year.

And shares of my favorite chip stock, Micron Technologies (NASDAQ:MU) were up 75%.

We closed 6 successful trades in MU in my Options Income Blueprint service.

And that is due in part to the volatility in the shares, which is also one of the reasons I love to trade MU.

High volatility translates into juicy option premiums.

Despite gaining more than 75% off its lows, I continue to believe MU will outperform the market over the next two to three years.

A Healthy Company

In their last earnings report, Micron’s quarterly revenue was lower year over year, but it exceeded estimates and profits came in above expectations as well.

More importantly, management delivered an upbeat forecast. They called for a “cyclical bottom for our financial performance” in the current quarter and a continued recovery in the second half of 2020.

I, too, am confident in a turnaround for the company. I expect to see a slew of new-and-improved electronics products hit the market over the next few years, driving demand for Micron’s memory chips.

Wall Street has yet to price this opportunity into the stock, in my opinion.

What’s more, the lemmings are quick to abandon the stock every time we see a negative headline about falling memory prices or the U.S.-Chinese trade war.

What they fail to realize is that Micron has superior technology when compared to its two main competitors, Samsung and Western Digital (WDC). Micron’s superior chips can command above-average prices.

It’s not too late to get in on these MU cash trades and start “chipping away” for your own cash profits.

 

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About The Author

Michael Shulman is a 30 Year Veteran of the financial markets – as a trader, a financial analyst, a financial writer and most recently as an educator.

Mr. Shulman made his first option trade in 1985 – COMPAQ Computer calls – a position that expired worthless. His second trade broke even; the third brought him a year’s salary, a near twenty to one return on his investment. Michael has never looked back. He entered the financial publishing business formally in 2001 as director of research for ChangeWave Research’s institutional research business and as the writer and editor of Hedge Fund Investing.

He has published two books – Sell Short and Made in America – both of which can be found on Amazon.com and is a frequent contributor to reputable financial sites like Seeking Alpha, MSN, MainStreetInvestor, and Traders Reserve.

His trade recommendations in his Options Income Blueprint, Perpetual Income Portfolio Club and Income Masters services maintain a 98% success ratio, meaning his trades produce the expected income 98% of the time. No one’s perfect.