Micron Technology
-
Almost all buy backs (Treasury purchases). The implied yield on a stock buy back is currently 20%. It increases ones ownership percentage-dividends do not.
-
Impressive, beat even your projection there Adam, given how odd the markets are, I'll expect the price to drop now...
@SteveRutter -there are so many moving parts it's pure dart throwing really-which doesn't matter because the company is not being value anywhere near a reasonable valuation. Why, because currently the market thinks the plates stop spinning and margins will collapse.
-
Almost all buy backs (Treasury purchases). The implied yield on a stock buy back is currently 20%. It increases ones ownership percentage-dividends do not.
@Adam-Kay basically free money then - whats not to like
-
Morgan Stanley just said Micron will earn $500B in about two years.
"Micron will earn close to half the current market cap by the end of 2028, with most of that returned to shareholders."
-
Thanks Adam. I should know the answer to this but remind me what currently happens to divi payments and what will happen to the proposed buy backs? I think that they are re-invested for PHE, PHT and the Lifestyle for Growth funds, and are paid out to the fundholder for the Lifestyle for Income fund. Is that correct?
Thanks.
-
Dividends are reinvested into your account as cash within the model and when they reach a suitable level, stock purchases are triggered. Buy-Backs have no impact as we arent selling per se. The idea being less outstanding shares.....EPS go up and the stock price should follow.
-
The news re the earnings not moving the share price much
-
I’ve probably said a few times, but when I was in a tech company (a unicorn, no less), the correlation between performance+results announcements and the share price very rarely lined up
Always something of a mystery to me: 23 years there, almost 100 quarterly announcements yet I still remained clueless as to the machinations on the NASDAQ
“results were expected”, or “price built in” were often bandied about….but the good companies continue regardless, and stock would rise over the weeks ahead
Quality of leadership and product are what count
Doesn’t stop me feeling like the markets remain rather frothy: can the bull keep running forever?
….but it is hard to disagree with Adam’s analysis on here that gives me hope
-
Cast your mind back to when we launched the Technology model. The PH forum 'SP500'. Paraphrasing 'tech is done-crash imminent' and this has been repeated adnauseum for 4+ years since and a decade prior. I see they are still at it. In fact take any time frame and the same crowd simply repeat the same narrative(who feel it necessary to post about stocks). Like their opinions have any value whatsoever.
In stock-market psychology, I'd describe the mindset in that PistonHeads thread as persistent loss-aversion expressed as perma-bearishness.
The underlying psychology isn't simply "they think shares are expensive." It's more like this:
They experience the pain of an imagined crash more strongly than the pleasure of participating in a rising market. Once that fear becomes established, they continually search for evidence that validates it.“Can this bull market run forever?” — No. Can equities remain in a long-term upward trend forever while suffering periodic corrections and bear markets? In principle, yes.
-
Cast your mind back to when we launched the Technology model. The PH forum 'SP500'. Paraphrasing 'tech is done-crash imminent' and this has been repeated adnauseum for 4+ years since and a decade prior. I see they are still at it. In fact take any time frame and the same crowd simply repeat the same narrative(who feel it necessary to post about stocks). Like their opinions have any value whatsoever.
In stock-market psychology, I'd describe the mindset in that PistonHeads thread as persistent loss-aversion expressed as perma-bearishness.
The underlying psychology isn't simply "they think shares are expensive." It's more like this:
They experience the pain of an imagined crash more strongly than the pleasure of participating in a rising market. Once that fear becomes established, they continually search for evidence that validates it.“Can this bull market run forever?” — No. Can equities remain in a long-term upward trend forever while suffering periodic corrections and bear markets? In principle, yes.
@Adam-Kay said in Micron Technology:
In stock-market psychology, I'd describe the mindset in that PistonHeads thread as persistent loss-aversion expressed as perma-bearishness.
This made me chuckle
I'm always amazed the amount of time/effort this type put into that mindset !
-
There are others ...There is something faintly absurd about an investment forum obsessively marking our homework and service while apparently declining to mark its own. Markets have the useful habit of eventually replacing rhetoric with arithmetic.