Like the famous Dali painting, Micron (NYSE:MU) shares are looking droopy and melted these days. While the company has made meaningful strides over the past decade in becoming a more efficient and less commodity-focused memory chip company, the reality is that it is still operating in a brutally cyclical market niche and this is a downward cycle. All of this sets up as a good news/bad news story for investors - Micron is a poor candidate for long-term buy-and-hold investors, but today's valuation could be appealing for value and turnaround investors.
A Tough End to the Year
Although Micron disappointed vis-à-vis a lot of analysts' expectations, the reality is that this is widely expected to be a washout quarter and underperformance in that sort of environment is not quite so troubling.
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