Micron Shares Pounded On Fears Of Loss Of Business From Apple; Stifel Defends

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Micron Technology, Inc. (NYSE: MU) shares were trading lower by $1.40 (4.5 percent) at $30.00 in Tuesday's session. The catalyst for the decline is a report that the company may miss out on supplying DRAM chip to Apple Inc. (NASDAQ: AAPL) for the companies new smartphones.

Investors did not waiting around to for the news to be confirmed and began pounding the stock in pre-market trading, shaving $1.00 from its share price in the seven minutes prior to the NYSE open.

After briefly attempting to hold $30.00 off the open, reaching $30.05, another wave of selling sent the issue under $29.00, reaching $28.79. That level coincides with its February 10 low ($29.00). Since making that spike low, it has battled back and made a new intraday high at $30.09.

This violent move is taking place on extremely higher than average volume. So far, it has traded nearly 28 million shares vs. its five-day average volume of 15.2 million.

Some of the rebound in the issue may be attributed to comments from Stifel that, according to Bloomberg, the move lower in the issue related to the Apple speculation may be overdone.