Aquamarine Capital’s Top 5 Stock Picks

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In this article, we discuss Aquamarine Capital’s top 5 stock picks. To take a look at a more extensive list of stocks and learn more about the fund, head over to Aquamarine Capital’s Top 10 Stock Picks.

5. Micron Technology, Inc. (NASDAQ:MU)

Aquamarine’s Stake Value’s Stake Value: $17.64 million
Number of shares: 200,000
Number of Hedge Fund Holders: 100

Computer memory and computer data storage producer Micron Technology, Inc. (NASDAQ:MU) ranks fifth among Aquamarine Capital’s 13F holdings. The fund added the stock to its portfolio during the third quarter of 2019. Micron Technology, Inc. (NASDAQ:MU) is one of the few tech stocks that Guy Spier is bullish on, the other two being Alphabet Inc (NASDAQ:GOOGL) and Twitter Inc (NASDAQ:TWTR), which rank on the last two spots in Aquamarine’s last 13F filing. 

Micron Technology, Inc. (NASDAQ:MU)’s shares have surged by more than 60% in the past 12 months. Our analysis shows that Micron Technology ranks 19th in our list of the 30 Most Popular Stocks Among Hedge Funds. Aside from Aquamarine, Arrowstreet Capital is another one of the 98 hedge funds tracked by Insider Monkey with stakes in Micron Technology, Inc. (NASDAQ:MU) as of the end of the first quarter. 

In its investor letter for the first quarter of 2021, Bonsai Partners highlighted a few stocks, including Micron Technology Inc (NASDAQ:MU) is one of them:

With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.

As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.

While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.

The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”



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