The motley fool
Micron Technology is a leading manufacturer of dynamic random access memory (DRAM) products used in consumer PCs and mobile devices, and its products are increasingly used in cloud server, industrial and other enterprise markets. . DRAM accounts for nearly three-quarters of Micron’s total revenue. Micron is also a leading supplier of NAND flash storage devices used in SSDs, which account for 24% of its business.
Micron’s business is cyclical and its prices fluctuate based on supply and demand. During the company’s fiscal third quarter earnings call, CEO Sanjay Mehrotra cited “strong demand in almost all end markets,” including PCs, data centers, smartphones and 5G. Mehrotra said Micron has so much automotive demand that it cannot keep up with it, and he also pointed out the strong demand in industrial markets.
A semiconductor shortage is causing demand to exceed supply right now, and that could last until calendar year 2022. But even when the supply shortage is finally resolved, Mehrotra expects that demand is still increasing.
Micron has been a volatile stock in the past, but its stock has risen over 1000% over the past decade. With memory prices fluctuating frequently, this is a stock you want to get properly when buying stocks. With Micron’s forward-looking price-to-earnings ratio recently approaching 7, the timing looks bright for long-term investors to buy.
Ask the fool
From CD to Odessa: What is the “Internet of Things”?
The madman replies: You may have noticed that a lot of “smart” things are connected to the internet and often can be controlled by apps on your phone. It’s the Internet of Things (IoT). Your doorbell, for example, can be connected to your home Wi-Fi network, allowing you to monitor and answer it from anywhere. You can also turn lights on and off and adjust your thermostat via the Internet, using connected devices, and your watch can also transmit fitness information wirelessly. Even refrigerators and washing machines are now part of the IoT.
The IoT potentially encompasses just about any object that can be connected to the Internet in order to be controlled or to transmit information.
From GN, Bay City, Michigan: How do you know if a company is paying a dividend?
The madman replies: Your best bet is to simply call the company, ask for investor relations, and inquire about dividend payments. It’s even easier to search for the company in online stock listings, which typically include any dividends and, if applicable, the current dividend yield – but note that these sites may not have the most recent information. .
A company’s dividend yield is more informative than the amount of its dividends because it allows you to compare the payments of different companies the way apples do. The yield is the percentage of the current stock price that is paid out in dividends each year. It is calculated by dividing the value of four quarters of dividend payments by the current stock price. So a company paying 50 cents per quarter ($ 2 per year) and trading at $ 40 per share would have a 5% return ($ 2 divided by $ 40).
School of fools
For investors and potential stock market investors, it is important to understand that there are a variety of ways to invest. Here is a look at some popular approaches. See which ones suit you best.
Dividend investment: Dividend investors seek income from their holdings, so they tend to look for stocks with generous dividend payouts and / or a history of regular and significant dividend increases. This is a powerful strategy because dividends from healthy, growing businesses are likely to increase over time and are paid in good and bad economies.
Value investment: Value investors aim to buy stocks at prices below their intrinsic value. Buying undervalued stocks creates a margin of safety and can reduce the chances of being burned by a plummeting stock. Big investors like Warren Buffett have focused on value for decades.
Growth investment: Growth investors, on the other hand, pay less attention to value and look for fast growing companies instead. They are more willing to buy seemingly overvalued stocks, hoping their price will continue to rise.
Large cap investment: This style focuses on large companies that have grown up executing strategies well over time. They are more proven and include many top names.
Small cap investment: Small businesses can be riskier, but they can also generally grow faster than large ones. They can be quite new and maybe not even profitable yet.
Investment in mutual funds: Investors who don’t want to study stocks and make buying and selling decisions on their own can simply put their dollars in mutual funds, leaving the fund managers to do most of the work. Index funds may be your best bet here, as they tend to outperform their more actively managed counterparts over long periods of time.
Note that you don’t need to adopt just one investment style. Many large-cap stocks, for example, have strong dividend yields, while some fast-growing companies may also have undervalued stocks. It may also be a good idea to diversify your portfolio with large and small companies.
My dumbest investment
From the CD, online: I bought shares of Rite Aid just before the announcement of its merger with Walgreens. One day it went up 35%, and I just looked at it in wonder. I did not sell and did not place a stop loss order to protect the gain. I saw it come down well below the announced purchase price. I figured this would be easy money to buy and hold for a month or two until the acquisition closed, so I drastically increased my position. Well, the acquisition had problems, the price was lowered, and the merger did not take place. I ended up with a loss of over 70% on the biggest stock in my portfolio. Lessons Learned: 1. Don’t walk in front of a steamroller to pick up a dime. 2. If a stock jumps 40% in one day, don’t hesitate: sell it, take the money, and run.
The madman replies: It is never worth risking death by steamroller for a dime. But think twice before selling a winning stock, because the best companies (and their stocks) will continue to grow over time. The planned merger between Rite Aid (which was in trouble) and Walgreens Boots Alliance has been the subject of significant criticism, and many expected the Federal Trade Commission to reject it. So the deal was changed, with Walgreens buying about half of Rite Aid’s stores for $ 5.2 billion.
Who am I?
My roots go back to 1928, when William Boeing and others founded me as an Aircraft & Transport company. I quickly started buying other carriers and in 2010 merged with Continental Airlines. In 2012, I was the first North American airline to fly the Boeing 787 Dreamliner. For a while my parent company owned Westin International, Hertz, and Hilton International. Today, based in Chicago and with a recent market value of over $ 15 billion, I am the third largest airline in the United States, with the most comprehensive global route network in the world. I serve over 350 airports in 48 countries. Who am I?
Can’t remember the question from last week? Find it here.
Trivia response from last week: L’Oreal