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guys demand for chips is falling you have Micron Nvidia AMD Intel they're all saying that demand is going to be falling we're going to go and look at Micron specifically in this video put a valuation on them and at the end we'll hit some trading but right now let's look at what Micron said Micron is warning there's going to be evidence that the collect that there is collapsing chip demand we have seen this across the industry intel was the first one to report and everybody panicked and the big thing for me as an investor in Intel I was saying okay not going to panic just yet I want to see what Nvidia reports I want to see what AMD says I want to see what Micron says and all across the board it seems like chips are slowing in demand not to mention we also have those issues of supply chain issues so micron leading U.S maker of memory semiconductor became the latest chip maker to declare its falling demand in um and warned that there's going to be a big big decrease in Revenue just like all the other ones the company said earlier on Tuesday the four quarter fourth quarter sales are expected to be low and this was after their earnings report they came in and gave more forward guidance going forward so they are expecting to have a big hit in Revenue which is not totally surprising following Nvidia and Intel highlighting uh the speed in which demand is evaporating so there's a story here that I've read on the morning show and the title was Nvidia is just one sign that the PC boom is over when we come down here this is something that I think is really important when we look at chips and I think that a lot of people are missing this big time prior to 2020 PC sales were either down or relatively flat for years so the question becomes is this decline in Revenue actually this big tragic thing or are we just going back to normalcy of what it was in the industry before guys think about this we had people sitting at home for covet literally doing nothing slash working from home what are they going to do they're going to go out and buy PCS laptops Etc that is going to be a major spike in Revenue in profit if that eventually pans out and it's going to start to Teeter because this was an anomaly Spike well things are just going to come back down to normal and then they're going to hit status quo and go sideways and maybe there's going to be some growth in there but in the entire industry there were a lot of issues that there was no growth going on look at this according to the IDC worldwide full year PC shipments grew by just 2.7 percent in 2019.
the last time that the Indies this industry saw full year-over-year growth was back in 2011. so just because these things are shrinking doesn't mean the world is over it just means it's going to go back to this very very very slow growth the Boom is definitely over we will not see that double-digit growth we actually expect to see declines of nine percent and that is just specifically for NVIDIA now we had that chip Bill come out Micron is going to invest 40 billion dollars in the United States chip manufacturing this is from the chip and science act that was signed into law uh just a few weeks ago or maybe maybe it was last week I have no idea um they said that they are going to put 40 billion dollars in the United States between now and 2030 creating 40 000 jobs in the United States and uh 5 000 highly uh senior jobs technical jobs Etc so the question becomes is this a dead company not even a dead company is this a dead industry well of course it's not because everything that I'm looking at in this entire room has something to do with the Chip And if it's not a chip I'm going to try to see this pen this pen doesn't have a chip in it but whatever machine made this it had a chip in it so every single thing is is Chip involved so I would not worry too much I would just if I'm when I go to stock analyzer tool to put evaluation on this let's just tame this let's go and look at the previous number so right now let's go and look at the at the income statement for micron remember this is a stock that uh monish has just been buying for years and years and years he he saw something in this a very long time ago let's look at their revenue growth so Revenue growth started at eight billion dollars in 2013 and ended at 31 billion and I'm looking for consistency so it was consistent growth a little bit of a drop here big big almost a doubling here um so it's inconsistent Revenue growth now I'm not going to penalize them for 2000 and when you got this big jump in uh 2019 2020 because there was of course covid let's look at their net income is that as inconsistent net income is definitely inconsistent so this is another thing maybe this is an industry-wide thing and I do know this is an industry-wide thing because I've looked at other companies shares staying consistent they're they're I mean they are buying back shares in some capacity but they diluted earlier total current assets of 21.5 billion dollars total current liabilities of not a 6.92 I like that let's look at their long-term light bill light bills long-term liabilities of 8.93 so I am okay with that do they use Acquisitions to grow in any capacity um no that's great okay let's let's go to stock analyzer and run this thing let's see what we have Revenue growth okay so here's the thing remember we talked about how the industry is going to be slowing as a whole I think or going back to normal as a whole where are we going to go with Revenue growth here so let's let's account for the last couple years have been a little bit Rich a little bit skewed so let's put in some numbers let's go with four I'm going to go 4 7 and 10.
remember 4 is pretty low but let's stress this let's stress the situation and see what we come out with profit margin I will go 23 25 and 27 it's a big spread but let's see a free cash flow margin I'm going to go lower I'm going to go 10 12 and 14. PE I'll give the 14 16 and 18 p e could be a little bit strong I mean how much more growth can can a company like this have that's that's a question that needs to be asked and I will do a 12 and a half percent return because I am not terribly concerned that this is going to be some risky investment I think that Mike the staying power for micron is definitely around so looking at this let me blow this up for you I don't think you could say blow this up on YouTube but that's okay if you go from a discounted cash flow thirty four dollars to ninety dollars you're sitting in that range right now at about 63 bucks if you go after multiple earnings that we put in 82 to 173.
for me I think we're closer to this level this discounted cash flow somewhere in that 50 range for micron and that's where I would be begin looking at shares guys my name is Mo I'm a value investor with Paul I also teach trading so if you're stuck around this long awesome and I'm going to show you some charts right now on how you can trade Micron it's just a little bit this is a way where if this valuation is a little Rich for you you can be involved in this stock so right now looking at Micron this date was January back here so I am not going to lie I'm a little concerned about this 50 stock that could be developing and a 50 rule is you have a high 52-week high 52-week low and all of this area this black area that's all called overhang and the stock price is just negatively pushing down on you those that lost all this money on the way down they're saying right here if I can just get a little bit of my money back back and they get their money back a little bit and then they start selling and it just starts creeping up and you you'll see it you'll check out Boeing check out CCL it has a very difficult time breaking through that 50 area but with that being said it does have a lot of room to run from 63 dollars to maybe 75 77 keep a watch on this if you get this red and yellow line into The Sweet Spot you could really go for a nice run here if of course you have great volume coming into the stock my only concern is all of these major moving averages you're stuck right here at the 25 to 50 you're below the 100 you're below the 200.
so what is it going to take to push through those nothing but volume nothing but volume but the good news for you this is a stock that has a lot of volume has a lot of daily activity so guys if you want more information on the eight pillar analysis in total click this video right here with Paul I'll catch you on the flippity flop foreign
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