Over the last two years, the only company I have found interesting is Micron Technology (NASDAQ:MU). I began following it four or five months ago when I noticed that it was falling. In the past I had noticed that investors such as David Einhorn (Trades, Portfolio) and Seth Klarman (Trades, Portfolio) were investing in it, and both bought it at much higher prices than what it is trading now. Einhorn declared after the stock prices fell that it was still a good investment. I am sure that it is a better buy now than when it was over $30. Indeed, after a long fall and having studied Micron for some months, I decided a few weeks ago that it was too cheap to let it pass and started buying it, fortunately at much lower levels than Einhorn.
I don't like to invest in a stock only because someone I admire owns it. I need to be convinced of it myself and focused on studying it. Fundamentally it looks cheap; what needed to be qualitatively analyzed is if the fundamentals can be sustained. As the conclusion of my investigations, I will discuss here a set of conditions that currently make Micron a unique buying opportunity. I will not focus on numbers such as EPS or fundamental metrics, because I believe that any sophsticated investor can find those out relatively easy. Rather, I will focus on the main factors that make Micron a sustainable long-term investment. Continue Reading »