WRKO>Audio & Video on Demand>>Brian Hamilton (Zacks, MU, SQ)

Brian Hamilton (Zacks, MU, SQ)

Oct 24, 2017|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We are joined now by Bryant Hilton from sex to a couple different tech stocks out restaurant often Micron Technology ticker symbol and you welcome Brian. And I don't so maker of semiconductors devices what and who they are real customers they are they serving the end customers on the cellphone company what they do. Other deadly don't do and customers at this point in time they did their design is that helping them out with a multitude different products. OK so we give us a few products that we would see out there that we might be familiar with that there there helping customers though. I think don't have that confront me. And that's that's fine let let's talk about you know what does the company scene of last year Lou what's their growth trajectory as like right now when you think about it right now. Well I think they have an excellent growth trajectory right now counts are looking at twelve months target price of about fifty dollars which it is almost nine dollars above where it is right now in the high Indian pot 65 we're looking between 2050%. Growth range over the next year for the company. They also introduced. One billion dollar offering of new common shares to reduce a bunch of debt. Arms and into the in the money convertible debt is and designed to restaurant and overall balance sheet to. Ideas like David that is. But that might be maybe be attractive. The other day you know what they're clearing out they're actually trying to do this to reduce it and give them more flexibility and domestic side to have more cash debris here than an overseas. So the debt is definitely. Looks guided me they're they're paid off and so it's nothing out outside the round. I died in that. I mean certainly been a pretty incredible one year to veterans and paid a bad a year ago there below twenty bucks a share close to him pretty much doubled that share price of last year or so Selig go from here in the second turbulent stock that was. Square I believe that's a mobile payment company right. Exactly yes wanted to legal ability that's been on top tier I stop Bernie and swipe card standout containment there not been very helpful for small business. It strikes me is that this. And I they have. What the other thing is what they don't really actually they're spending and debate even further for us to be a square financial services. So that's gonna actually really helped their small business loans and a larger business loans. And did the company is actually he loan growth over 68% year over year and alas I report. Really what's they just doing what do you know what sort of loans are doing in the space. They're looking for larger business companies over 200000 dollars and you on business they typically have been speaking with the small business loans they had over a 140000. Of these small business loans about one point eight billion dollars and 2014. At silicon expand into the it's a larger area. What bigger businesses with. Okay. Well I again to companies have seen some pretty tremendous growth we'll see risk to go from here I think some journalist Brian how's our rat. Our professor square's not just doing these landing in Texas that's another big really tracked product about them they're actually really expanding intact ecosystem. Without e-commerce solution marketing solution payroll deposits. Inventory management and new software. Which is actually really helping their subscriptions which has been built up over 99% year over year. And the fact they're not just a domestic company as well they're actually available in Canada Japan Australia. And I recently opened offices in the UK so they're looking to expand their domestic banking but they're also expand their searches outside in an international market as well. And where you guys bring a price target of these yes. These guys are currently. It's we're looking in and at two dollars and sixteen cents an out and annexed cor abstinent. With the app price target. In the low fifty dollar range. OK well a lot faster join us Brian appreciate it via those two companies are micron technologies ticker symbol and UN square Eskew. Technology areas that are a little bit of my head but clearly they're expanding quickly and timing tremendous returns. I get a little bit worried about the square company is you know I think it just that one product but clearly there expanding to a lot of different areas. The other thing the thing I always look at with companies like this is. Growth is hard to come by today and it's it's difficult to find. Companies that are growing at significant rates and so. When you take a look at square looked big revenue. Almost 35% from fifteen to sixteen this year they're on pace to grow revenue by eight BO again close to 2530%. So. That type of growth in today's market. It's going to carry a premium just because it's so hard to find right now especially on companies that are now doing over billion dollars a year in revenue. There's not a ton of that so it's it yeah certainly pay a premium for it. And those will be companies that are hurt if that growth never slows but. That's that's why they're trading is expensive. Leaves them certainly are expensive Canadian.