Wednesday, June 1, 2011

MU Drops 5.6%

Micron Technology plunged today by 5.6% after South Korean rival Hynix said it may miss analysts' consensus estimate for operating profit in the second half of 2011. The news from Hynix is having a broad-based, negative impact on U.S.-listed memory chip makers. The stock performance today was also influenced by the news that Diversified Fluid Systems accused Micron of breaking contract. A chemical and fluids business that relied on Micron Technology Inc. for about one-fifth of its revenue accused MU of conspiring with four industry workers and a local construction company to take a half-million-dollar project away from it. DFS is suing Micron for breach of contract and fair-dealing and good-faith covenants. Despite this negative news many analysts are expecting strong third quarter for PC’s and believe notebook units may surge 10% to 15% in the quarter, which seen a as a positive driver for MU.

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