Three Stocks: Micron Technology, AEye and Fat Brands

Micron Technology (MU)

Micron Technology stock rallied for more than 4% on Friday after hit its best price level in more than three weeks.  The move came on no new news from the semiconductor company, but overall strength in the semiconductor sector.

The Philadelphia Semiconductor Sector close the day higher by more than 1%, driving buyers to names like AMD, Micron, Western Digital (WDC) and of course NVIDIA (NVDA).  The group has been lagging for the last two weeks as investors appeared to be growing weary of AI stocks, looking for alternatives to the toppy sector.

Micron’s move pushed the stock back above its 50-day moving average, which has been trending higher.  This bullish action is likely to draw more buyers into the stock and sector over the next week.

Target a move to $130.

AEye (LIDR)

Shares of AEye – we’ll come back to that name in a moment – are trading more than 155% higher this afternoon after the company announced a planned merger with LiteOn Technology Corporation.

AEye’s shares have been trading just above $1.00 for more than a month as the stock was avoiding what would have likely been delisting.  The delisting move happened in late 2023 when AEye’s management executed a “one for thirty” (1:30) stock split to bring the price of LIDR shares back to a level that would avoid exchange delisting rules.

Let’s talk about the name change for a moment.   In August of 2021, CF Finance Acquisition Corp. III changed its name to AEye when merging from LIDR.  The name AEye was a clear move to tap the “buzz” surrounding Alternative Intelligence, reminiscent of Pet.com and other “.com” bubble companies.

Maintain a safe distance from LIDR shares as they are likely to regress right back to their $1.00 value.

Fat Brands (FAT)

Fat Brands, purveyor of brands such as Twin Peaks, Fazoli’s, Johnny Rockets and Fatburger, had a bad Friday as the company’s CEO and board came under fire from Federal prosecutors.

In February, the company received a Wells Notice from the SEC regarding accounting issues dealing with the CEO’s handling of personal expenses through the company’s finances and misleading the company’s management and board members.

The actions go deeply enough that the company has now been indicted, a move which management is denying.

Shares tumbled from $7.50 to close below %5.50.  FAT’s stock price traded last at $5.50 in December 2023 before posting an impressive rally to $9.00.  The stock’s return to $5.50 displays many stocks’ pattern of travel after breaking below the psychologically significant $10 price.

Shares are trading 7% higher in after-hours trading on Friday.  Please do not consider this an opportunity to add Fat Brand shares to your long-term portfolio.