Steve, maybe you can help me with this QNTM plant closing. It is to my understanding that the plant made HGAs. How is this good for any of the HDD makers? It would seem to me that that would cause head prices to go up (great for RDRT and APM), which increases their costs!
As far as being long these stocks, I am beginning to reconsider. I own WDC and APM, and am obviously deep in the red. APM may or may not have bottomed out. WDC is a much more solid company, but it is the one I am thinking about selling. Based on company guidance, WDC will earn around $1.50 next year. This negative earnings growth has got to weigh down on the stock to some extent. This may very well be the bottom, but with earnings like that, it is hard to imagine that WDC would make it up to $30.
WDC is still a first rate company. I think this is not the bottom, and even if it is, there are better places to put your money for 6-12 months until this thing gets resolved. One thing I will be looking for is lower profits, but higher market share. Once this thing gets resolved, that will play a major role in future earnings.
I am thinking about buying more CREAF. Also, does anyone know anything about RNBO? trading at 24, 2 times book and sales, 5.70 in cash and no debt.
Brian |
