Micron in the Accumulation Zone: There's Still Time

Mar. 4.07 | About: Micron Technology (MU)

Friday morning I noted that Micron (NASDAQ:MU) and SanDisk (SNDK) had dropped into the Accumulation zone – as the first two of the Cara 100 in this cycle. Seeking Alpha seems to like MU tu. (smiley goes here).

But, while MU is in the Accumulation Zone, I also said I was not yet buying the stock. I feel that another cycle down in the market will take MU to possibly a new low. In any event, I don’t think the stock is going to run away to the upside and I like the prospect of staying in cash longer. Time, you see, is our most valuable commodity.

But if you are looking at the markets with a 3 to 5 year horizon, it makes sense to buy MU here, for the reasons explained by Seeking Alpha.

MU 1-yr chart

mu chart