Diamonds and Dogs
Micron Technology (MU) trading at a new recent high.The DRAM chipmaker is up 6% to a one and half year high on an upgrade. The analyst at Cowen believes DRAM fundamentals may improve earlier than expected and raised his price target to $70 from $50. Demand is coming from a server upgrade cycle and 5G smartphone adoption that is driving upwards of 50% content increases in premium tier handsets. Micron's stock has soared 29.5% over the past three months, while the chip sector index has rallied 19.7% and the S&P 500 has gained 10.4%.
Profit-taking in the oil space. Chevron (CVX) is down 2% on a downgrade to Underperform from Bank of America/Merrill Lynch. The stock has gone nowhere in the last year. In an interview on CNBC, the CEO said they do not have significant operations in Iraq, but company is still operating there. Here is an interesting stat, for every $1 price increase in oil, the company will add another $450 million in cash flow. With a 4% dividend yield, the major oil companies are acting more like utility stocks.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.