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Technology Stocks : Western Digital (WDC)

WDC 168.90

+4.9%

Dec 5 9:30 AM EST

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To: Augustus Gloop who wrote (7500)	11/12/1997 3:12:00 PM
From: Chris Anderson	Read Replies (1) of 11057

I had to bail from WDC at a loss, building a house. For those still hanging on, here are some comforting words from VL (dated 10-24-97): "Performance has been hampered by severe price erosion in the desktop drive markets" "Indeed, it appears this latest bout of price competition in the DD industry is no more than a temporary inventory glut, and it certainly does not indicate a fundamental drop in demand" "We look for solid growth in units shipped this year" "We view the stocks current trading range ($39) as a good entry point for value-oriented investors" They estimate 98 earnings at $3.45, but that is with a .67 first qtr. Outlook to 2000-02 is share price in $70-115 range. I am skeptical, but if SEG and WDC really cut production as claimed, this should help margins. You would think they would be almost DESPERATE to do something to better manage the supply/demand equation. Only time will tell. My opinion is that WDC will see better times, maybe earn $2.50 next year and with a good outlook to 99, stock may peak at $45-50 sometime in 99. Good luck you guys. Happy investing! (sorry, couldn't resist :-) ) Chris

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