Taking a look at MU. Greenlight bought more in the face of sellside downgrades (Nomura, Drexel). Trading at 52wk lows which implies 7-9x fwd earnings. Bull case is summarized as follows:
- The stock is cheap 7 - 9x forward earnings estimates.
- The industry's oligopolistic structure reduces the odds that there will be over production.
- Even in the midst of the relatively weak DRAM environment, Micron will make somewhere between $3 and $3.25 EPS this year and $4 a share...