The last time I wrote on Micron (NASDAQ:MU) it was in tandem with Intel (NASDAQ:INTC) while riding down the DRAM cycle. That article was written in September of 2015 – things weren’t looking up for Micron, in fact they were still headed down.
I distinctly said I would be using Micron to play the turnaround in the industry. Now granted I played it a just a bit too early by initiating in the $16s and about nine months before the turnaround, but it allowed me to average into my position and bide my time. Mind you this was during the blood-in-the-streets phase of the market so it was not an easy decision to pull the trigger.
Things Looking Up For The DRAM Market
Back to the present, we are seeing the first light of a reviving DRAM cycle as Micron management issued great guidance for next quarter on the back of improving DRAM demand. Take a look at the 13% single day increase Thursday after the stock had already rallied 100% from its single digit lows in Ma y. That should tell you something about the cycle’s phase.
stock market picks: Snap Inc. (SNAP)
- [By Evan Niu, CFA]
Easily one of the most aggravating aspects of Snap’s (NYSE:SNAP) forthcoming IPO is the fact that investors buying the Class A shares being offered will get exactly zero votes per share. No more, no less. While it’s common for tech companies to set up capital structures that preserve majority voting power for insiders, it’s uncommon for public investors to get no votes at all. Typically, investors will get at least one token vote per share, even if that vote is effectively useless in practice.
- [By Timothy Green]
With its S-1 filing finally made public, Snap Inc. (NYSE:SNAP) is close to selling shares to the public for the first time. The company, known for its wildly popular Snapchat app, is expected to raise around $3 billion and be valued in the ballpark of $25 billion. Snap only started running ads in late 2014, producing just $404 million of revenue last year. If a price-to-sales ratio above 60 doesn’t scare you away, here are two more reasons to stay far away from this hyped-up IPO.
- [By Evan Niu, CFA]
Snap(NYSE:SNAP) has disclosed, in its S-1 Registration Statement, that the company’s flagship Snapchat platform now has 158 million daily active users (DAUs). This DAU base also serves as the basis for how Snap calculates average revenue per user (ARPU), which is slightly different from other social networks, which often calculate ARPU based on monthly active users (MAUs).
- [By Andrew Tonner]
Mark Twain’s observation that “history doesn’t repeat itself, but it does rhyme,” serves as something of a cautionary tale for those thinking about investing in Snap’s (NYSE:SNAP) upcoming blockbuster IPO.
stock market picks: Gibraltar Industries, Inc.(ROCK)
- [By Lisa Levin]
In trading on Friday, basic materials shares fell by 0.82 percent. Meanwhile, top losers in the sector included Gibraltar Industries Inc (NASDAQ: ROCK), down 9 percent, and Yamana Gold Inc. (USA) (NYSE: AUY), down 9 percent.
stock market picks: Insperity, Inc.(NSP)
- [By Lee Jackson]
Insperity Inc. (NYSE: NSP) also had a large-scale seller on the desk, and it was another well-known hedge fund. Value Act, which also serves as a director at the company, sold a total of 226,000 shares of the stock at prices that ranged from $71.22 to $72.41. The total for the sale was set at $16 million.Insperity provides an array of human resources and business solutions to enhance business performance for small and medium-sized businesses in the United States. The shares closed the day on Friday at $71.85.
stock market picks: Ethan Allen Interiors Inc.(ETH)
- [By Dan Caplinger]
Wednesday was a strong day for the stock market, as the Dow finished up nearly 100 points and the S&P 500 and Nasdaq both posted gains as well. Investors remained generally upbeat about the prospects for the U.S. economy in 2017, and a rise in crude oil prices helped lift the energy sector higher during the market session. Yet comments during a press conference from President-elect Donald Trump weighed on the healthcare sector, and some individual stocks took particularly hard hits. Among the worst performers were Perrigo (NYSE:PRGO), Novadaq Technologies (NASDAQ:NVDQ), and Ethan Allen Interiors (NYSE:ETH). Below, we’ll look more closely at these stocks to tell you why they did so poorly.