January 2016

[admin]

Micron is experiencing difficulties now, that can endure for some time (hence the modest initial position), but:

Additionally, demand for PCs has been softer than expected, leading to a massively out of balance supply/demand curve and a resultant price crash of DRAM by ~40%. The PC market has historically represented 30% of demand for MU, but luckily most of the future growth is in cloud computing, Internet of Things, and mobile. Gartner predicts the Internet of Things will support significant growth in hardware spending over the next several years, driving +20% YoY growth from 2015-2016 and accelerating growth thereafter. We are rapidly heading toward a future where every device purchased has a chip, and in this future the chipmaker is king.

Micron Valuation: An In-Depth Analysis - Micron Technology Inc. (NASDAQ:MU) | Seeking Alpha

Something similar can be said for InvenSense, which is why we are holding on to these (actually, we should have added in the selloff this morning)..