“The class actions suit is being filed on behalf of US consumers of smartphones and personal computing products during the years of 2016 and 2017. The suit cites independent investigation by Hagens Berman antitrust attorneys that claims it was discovered that these major DRAM manufacturers [Samsung, Hynix and Micron] colluded on limiting the supply of various DRAM products in the marketplace, thereby driving up prices on this specific memory type.”
Micron was down a little over 5% today, with average volume.
If I remember right, the risks are now:
Possible IP theft from China
Covertible bonds diluting the stock just when the share price is climbing so nicely
This class action suit
But I still think it’s likely that Micron is gong to sell a growing boatload of very profitable products for the medium term.
I have no doubt they tacitly did so. Proving it is something else. A lawsuit like this will take many years and be something the Shell Oil antitrust suit that took (if I recall correctly) more than 90 days of trial.
Risk, heck no. By the time this case is heard (should it go to trial) we will be at the next downturn or beyond in the cyclical DRAM market.
I’m not selling, especially since their big-deal products aren’t involved in this, anyway. Some day maybe they could end up giving out coupons for free RAM sticks, something like that.
I just wanted to put all the negatives in one place and give them some thought, but the upside stays very compelling to me.
I suppose that MU isn’t on the MF radar because you can’t just buy it and forget about it?
Yeh I’m holding tight. The latest cloud/data center results have all been stonking. I can see Micron and dram/nand demand and pricing and production all looking great.
Anyhow - All American companies seem to all be being sued by litigious American consumers or business competitors all of the time. It’s one of the risks of doing business in and with the US.