If you have heard of the NOR Flash Memory, or the DRAM, or the NAND Flash, then you must realize that the company which is responsible for these semiconductor devices is none other than Micron Technology, Inc. (NASDAQ:MU). It manufactures all these products in various facilities located in the U.S, Israel, China, Italy, Singapore, Puerto Rico and Malaysia. Lately, the company’s stock has attracted a lot of interest from investors looking for bullish companies. In this article, we will examine why this is happening, and what factors have led to this situation.


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Micron’s Results Show Profits Were Made

When Micron published its third quarter financial results for 2013, it stated that it had made a tidy profit. Its net income is around $43 million, but more importantly is the fact that it expects a massive improvement when it publishes its fourth quarter results. These are a few of the reasons why investors appear to be quite bullish when trading MU stock. This third quarter net income may appear small, but only if you disregard the $286 million net loss which the company reported for the second quarter of 2013. Q3 of 2012 posted a net loss of around $320 million too.

Not only has there been a reduction in the company’s losses, but it has moved on tom profit making where few had given it the remotest chance of achieving such. The net sales for the third quarter of 2013 were $2.3 billion, which is quite close to the $2.1 billion for Q2 of 2013, and the $2.2 billion posted in Q3 of 2012. Since the net sales have remained more or less at the same level in the last three to four quarters, MU’s profits could be as a result of its successful efforts aimed at cutting down on costs. If this is the case, then it is a source of major excitement.

Other Factors responsible for Micron’s Increased Sales

The increase in sales and the improved profits could also be attributed to the increase in sales volume and selling price of certain products such as DRAM. This is just one of the factors which has enabled MU to end up with cash flow and short term investments of around $2.55 billion. This is an increase from the $2.23 billion which was reported in the second quarter of 2013. There was a further increase in the company’s earnings per share, receivables and inventories as well over the same accounting period. If this doesn’t make you bullish as an investor, what will?

The demand for memory products has been on an upward trend for quite some time. If this goes on for awhile, Micron will be one of the major beneficiaries. Micron’s efforts aimed at cutting down on costs while improving its margins have started bearing fruit. It has made a number of acquisitions, renegotiated an agreement with a consortium which it is a part of, and sold a few of its assets, while stopping some of its operations. These efforts have made it possible for MU to make a turnaround within a very short span of time, thus making this a bullish stock.

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