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Today i’m going to introduce you guys to one of the hottest stocks in the entire stock market this stock has performed unbelievably well the past year and in the past month it is absolutely on fire now this particular company is one of the biggest holdings of a close friend of mine it’s actually as big as holding and he is making a killing on it right now and i
Have several people in my stock market membership group that are investors in this company a matter of fact i would go on a limb and say there are more people invest in this particular company in my stock market group that even big companies like apple or google it is insane so many of them have tried to talk me into buying it and unfortunately i haven’t and will
Get to kind of why i haven’t personally bought it but first we got to look at this company right so when you think of a high-flying stock you know one that’s going up at a rapid rate usually you think of high p/e companies right this company right now has a trailing p/e of 9 on it and has a forward p/e under 7 on it right now ok that’s like crazy to think about
Right off the bat like usually companies that are up massively in the past month in the past year usually they’re mostly like high-flying stocks that have ridiculous pease this one is not whatsoever guys let’s go ahead and look at this income statement look at how revenue is rising just in the past four quarters okay this is just the past four quarters they do 4.6
Billion then they do 5.5 billion then do 6.1 billion then they do 6.8 billion dollars in one quarter look at how that’s risen and just in the last four quarters guys look at gross profit from 1.7 to 2.6 billion to 3.1 billion to 3.7 billion dollar dollars guys it is unbelievable then we go ahead and we look at the net income line look at the way the numbers are
Going up from 894 million to 1.6 billion to 2.3 billion to now almost 2.7 billion in this past quarter and most people that are invest in the stock believe this is a company that they will be making around 3 billion dollars in net income per quarter guys around 3 billion dollars in net income per quarter throughout 2018 that is mind-blowing look at that the way
Their balance sheet is improving now so they had only about well that’s a lot of money still three point six billion dollars four quarters go in cash now they’ve gotten into a place where they have actually over six billion dollars in cash in you can imagine if they’re gonna bring in another three billion dollars that’s a in this current quarter that might jump up
To nine billion dollars we got short-term investments of about one hundred and sixty six million on this company and long-term investments of around three hundred and fourteen million and they are paying down debt very nicely they used to have a ton of debt on this company right even if you go back just four quarters ago look at the long-term debt was that eleven
Point three billion dollars now in this most recent quarter they’ve got it down to about seven point six billion dollars and as you can imagine if you’re gonna be pulling in three billion dollars in profit for a quarter you can probably get the rest of that debt paid off literally within the next two or three quarters guys that’s how fast it can happen here now
What is the company it is micron technology a ticker symbol em you this company is up nearly fifty percent in just the past month guys up over forty eight percent in a one month span that is unbelievable performance so if you had a hundred thousand dollars invested in this talk a month ago basically you got about one hundred and fifty thousand almost now over the
Past five days alone in the stock is up 15 percent it is just absolutely on fire now their business it’s mostly a dream in and business you can pause the video here if you want to look more into their description of the company and what not their businesses are very much more i would call it commodity related so meaning you know depending off this oversupply if
The there gets to be a point where there’s too much supply prices drop a lot and a company like this their profitability erodes very quickly but right now pricing is going phenomenal and they’re making money hand over fist like if you look at the the revenue they got coming in there this next quarter up here they’re gonna potentially do somewhere around seven ish
Billion dollars in revenue if they do three billion plus and net income guys that’s ridiculous that that much money made it down to that bottom line it’s almost like a facebook situation here right i said two very different business models obviously so this company is on fire right now everything is clicking for them now people always ask me like why aren’t you
Investing i’ve had one person or two p my stock market group actually like you know try to convince me to buy this stock mu stock my you know very close friend who’s his biggest investment he’s like why are you not in this one i know you love lower p/e companies is such a great value and what now the reason i am not personally in this companies because i don’t
Like to make money no i’m just kidding the main reason is i am not convinced i am not convinced that 2018 is not going to be their best year of the company in the history okay so i’m not convinced that it gets any better for m mu going forward that is my big question i there’s nothing i’ve looked and then company so many times and i when i look into the company
There’s no way i can convince myself that 2018 is you know just gonna be a good year and 2019 is gonna be even better 2020 it’s gonna be even better when i invest in stocks i really like to get into companies that i feel and i’m like convinced that they’re gonna do better in the future than they’re doing today with mu i don’t know if i can say that i i know i can’t
Say that it doesn’t mean i disbelieve in their business model it doesn’t mean i think they’re gonna go down doesn’t mean i think they’re a bad stock it just means i haven’t been convinced that that 2019 will be better than 2018 is gonna be and 2020 is gonna be better than 2018 so for that point i cannot get in it but but on the flip side and you know it’s a good
Point my friend brings up he says okay if this is a forward p/e right now so forward p/e on the stock of what was it on it was under 7 we’ll just say 7 on it right now right he’s like alright if profitability drops by 50% ok if their net income drops by 50% and the stock price stays the same their forward p/e on that company is going to be what 14 at that point
That’s not that’s still not too high that’s still actually under what the markets at and he’s like if that’s it net income drops by 50% and it’s the truth if net income was to drop by 50% in 2019 versus what it’s supposed to be in 2018 and the stock price stays the same we’re still gonna have a forward p/e that’s under what the market is trading out on the stock
But at the same time if those prices really erode in a rapid this could be a company that goes from actually being you know unbelievably profitable to not really profitable at all or making you know or literally losing money this is a company that historically lost a lot of money when pricing was weak so i don’t know it’s one of those stocks i would love to get
Him i see the 7 in pete for pe i see them paying down this balance sheet they should have need all within two or three quarters have virtually no debt on the balance sheet a phenomenal balance sheet ton of money to invest in the business and i look at all that and it’s exciting to me it’s absolutely exciting and it’s like wow where can they go and you know could
This be a hundred dollar stock before you know it and whatnot but at the same time i’m just i just cannot get in this one just because i’m not convinced that 2019 will be better than 2018 is gonna be and so forth and that’s just you know my investment style and you know maybe it’s for wrong maybe i should just jump in this one but that is literally how i feel about
It i’m just not convinced that the future is gonna be better than today with this particular stock in you know i’m not convinced it’s gonna be you know a horrible stock or anything like that just i can’t get in a personally but i would love to know your guy’s opinion on this do you follow em you or you invest in em you you know i love to hear your guy’s opinion
On this dog if you are invested in em you and your big investor in the company and you think they’re gonna do you know way better in 2019 2020 2021 i would love to hear your opinion on why you think that and maybe you don’t think that maybe you think it’s just gonna you know you know this year’s gonna be their best year and everything’s just gonna be kind of like
Okay after that and maybe you’re fine with that and i would love to hear kind of your guys explanation down there in the comments and if you don’t own this stock is this one you’re thinking about buying or looking into i would love to hear from you guys down there anyways hope you guys really enjoy this video let me know if you did thank you for watching and have a great day
Transcribed from video
The Hottest Stock in The Stock Market Right Now! By Financial Education