For the fourth quarter of fiscal 2006, the Company earned net income of $64 million, or $0.08 per diluted share, on net sales of $1.4 billion. "Micron effectively executed its diversification strategy, resulting in strong financial performance for the year while strengthening its platform for future success," said Steve Appleton, Micron's chairman, CEO and president. In fiscal 2006, the Company began to realize benefits from its diversification strategy, particularly with its CMOS image sensors. The Company is the world's leading provider of CMOS image sensors and doubled its sales of imaging products from fiscal 2005 to 2006. Analysts polled by Thomson First Call however were looking for the company to earn 14 cents a share, with $1.41 billion in revenue during the fourth quarter. Shares of Micron sank 8.3%, or $1.46, to $16.08 in extended trading.????????? Obviously company is doing great how come some shixx analysts decide how much company should be making and then traders making bad decisions?
It's not about how the company is doing, it's all about what the market expects vs. what the company reports. The market price is based on expectations so when those are not met the stock is re-valued. Now, whether the new price is fair or not is up to you to decide and then make appropriate investment/trading decisions.
This is a very simple deduction. Micron is trading at a 52 week high and there is great suspicion that the semiconductor industry is going to be weak. It didnt matter how that conference call with Micron went. If the conference call was very good, then they would think that that will be the best that its going to get. If the conference call was bad, then it would have confirmed their suspicions. I recommend going into Marvell and other semis that have already fallen. Micron is still trading too high and has a lot more way to go in the down direction.