Bill Baruch shares his outlook for the semiconductor sector as the stocks from Micron to Western Digitals have performed well in recent weeks. With the prospect of heading into a stable growth & inflation regime, Bill shares what it means for the industry.
Bill Baruch, President & Founder, Blue Line Futures***transcript***
So, I mean, you you can’t really afford for there to be a lot of profit taking in this area. You’re right. I mean, I’m positioned very heavily. I mean, here’s the thing. I mean, when you and I talked about it all summer long, I mean, we were looking for this seasonal weakness. So I’ve actually it’s not like I said, it was heavily weighted in these all year long.
I’m going shopping with 20% cash over over the last month and a half to two months and reestablishing these names. I mean, none of these names were not even in my top five. Still is actually seven at this point now, but a lot of these names fell out of my top five as it took to cash and then reestablish these positions.
I’m I’m pulled up now and haven’t pulled up for the last couple of weeks. All right. I mean, speaking of where you’re putting some cash to work, Western Digital, that’s in Dubai for you. It is. It is. It’s been on my radar for for quite a while now. Micron is in our top ten and it’s in the same space in the memory space right now.
And one of the things I really like from the Micron CEO this year, as noted, the trough in memory demand. Now Western Digital, I mean they’ve had some some just obviously developing news over the year. Kayaks which was a merger that they were talking about and it has been terminated. They also decided to spin off SanDisk, which is in the last two weeks.
Or is this all happening at since the end of October? It’s rallied significantly out of the hole. And I think that’s really good news. They’ve been able to restructure some debt. They have one more wave of debt to restructure, hopefully here by the end of the year. And with rates coming down, I think it sets the company in a really solid place to perform.
And here’s the thing. In a lower inflation environment that we’re still seeing decent to better growth, this is the type of name that you want, you want to own, and I expect it to perform. I mean, talking about Micron making 52 week highs today, and on top of that, it’s about 40% and very quiet 40% this year. And Micron Center, top ten, I know you you you can’t own everything.
Why did you miss this? I mean, you want to talk about.
