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Technology Stocks : Western Digital (WDC)
WDC 161.98+2.7%1:21 PM EST

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To: Sam Citron who wrote (10734)8/28/2003 6:45:27 PM
From: Sarmad Y. Hermiz  Read Replies (1) of 11057
 
>> How do you derive the $1.50 earnings? What assumptions are you making? Why did you choose a P/E of 15?

1- wdc's revenue will be approx $3B. Their business model net margin will be 7% to 11%. Let's say 10%. That's $300m. divide by 200m shares. Equals $1.50/sh.

2- P/E of 15. If you don't think that will be a P/E that will be reached for a very profitable tech company, you can pick any other number you like. What's Intel's P/E or STX or MXO, or AMAT or .... or ... or ....

3- WDC is absolutely the best stock value on the NYSE. I have sold nearly every other stock that I have and put the proceeds into wdc.

Did you notice that the SSB laughing stock fool upgraded the week ago price target of 8 to 10 today ? What a maroon!
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