Micron Technology, Inc. (NASDAQ: MU)
Micron Technology, Inc. (MU), a semiconductor company yesterday announced an agreement to acquire Inotera’s remaining shares for $0.92 per share. Micron now owns 33% of Inotera. The transaction is valued at approximately $3.2 billion. Micron also announced an option to license their Micron 1x and 1y Dram technologies to Nanya Technology Corporation.
Micron Technology, Inc. CEO Comments
Comments regarding acquisition of Inotera:
“We believe this is a compelling combination for both companies’ shareholders and employees,” said Micron CEO Mark Durcan. “The acquisition is the culmination of a highly successful seven year partnership with Inotera. It enables Micron to realize the full financial and operational benefit of Inotera’s operations and provides a strong future for Inotera and its employees, who will become an even more critical part of Micron’s success.” Globe Newswire
Comments regarding License agreement with Nanya Technology Corporation :
“Micron and Nanya have enjoyed a strong relationship over the years, and this agreement extends our strategic relationship while also providing further value to both companies and their shareholders,” said Micron CEO Mark Durcan. Globe Newswire
MU Technical Analysis
MU gapped up in price yesterday to $14.43, up from the prior day’s close of $14.11, which is a 3% increase on the favorable news. Taking a look at the daily chart, we can see the last time MU traded at this price level was on December 10th, when it traded at $14.66. Taking a further look back on the daily chart, we can see that MU has been on an overall decline dating back to June 1st when it traded at $28.42. More recently, MU has been on a sharp decline from December 1st when it traded at $16.55. MU has a float of 1.04 billion shares and was trading below the normal daily trading volume. MU did reach pre market highs of $14.59, but gave back $0.11 at the open, or equivalent to 1%. For trading purposes, my entry point would have been $14.50, looking for a run to $15. My stop loss would have been $14.30, fearing anything below that and the stock would start to fill in the gap up.
Micron Technology, Inc. provides semiconductor systems worldwide. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. The company offers DDR4 and DDR3 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; mobile low-power DRAM products for mobile phones, tablets, embedded, computers, and other mobile consumer device applications; DDR2 DRAM, DDR DRAM, GDDR5 DRAM, SDRAM, reduced latency DRAM, and pseudo-static DRAM products for use in networking devices, servers, consumer electronics, communications equipment, computer peripherals, automotive and industrial applications, and computer memory upgrades; and HMC semiconductor memory devices for use in networking and computing applications. It also provides NAND Flash products, which are electrically re-writeable, non-volatile semiconductor memory devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; managed multi-chip package products; digital media products, including flash memory cards and JumpDrive products under the Lexar brand name. In addition, the company manufactures products that are sold under other brand names; and resells flash memory products that are purchased from other NAND Flash suppliers. Further, it provides NOR Flash memory products, which are electrically re-writeable, semiconductor memory devices for wireless and embedded applications. The company markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors; and through a Web-based customer direct sales channel, and channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho. Yahoo Finance