Western Digital (WDC) Message Board

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Technology Stocks : Western Digital (WDC)

WDC 157.75

+1.5%

Nov 26 3:59 PM EST

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To: PeterR1700 who wrote (7866)	11/26/1997 3:01:00 PM
From: CalculatedRisk	Read Replies (2) of 11057

Peter, OK, here are some happy thoughts (as opposed to good news). There are number of factors that have caused the recent drop(s) in share price. IMO, the most important is WDC's downward guidance on earnings. The main issue impacting earnings is the current price war and dumping of drives - primary caused by Fujitsu and Seagate. IMO, this will be a short duration phenomenon (Seagate dumps at the end of every year!) and pricing will be restored by the middle of next year. I told you - happy thoughts! The last time I bought WDC was 11/6/95 (checking my records) at a split adjusted price of 7 3/4. Here is a comparison between two years ago and right now based on the September quarters: Price per share: 1995: $7.75 1997: $20.25 An increase of 2.6 Revenue per share: 1995: $21.60 1997: $46.40 An increase of 2.2 Earnings per share: 1995: $0.32 1997: $2.68 An increase of 8.4 Using Q4 estimates of $0.20 per share: An increase of 2.5 in earnings! In 11/95, I thought WDC was the best bargain on Wall Street. The stock ran up 8-fold! Given the Company's two year performance, IMO the valuation is starting to look like a super bargain once again. Regards, Bill

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