SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dennis 3 who wrote (49719)10/10/2012 1:10:02 PM
From: Sergio H1 Recommendation  Read Replies (2) of 78717
 
Overall, WDC's financials do look good, but there's some questions. I do not think it is a value trap either.

On the financial statement, there's a large increase in R & D spending as well as an increase in selling and administrative costs. WDC is looking into expanding its products to compete better?

On the balance sheet you'll find large increases in goodwill and intangibles along with a large increase in long term debt. I didn't look into what this is about. Maybe acquisitions?

On the plus side is growth in retained earnings and treasury stock, and the co. is solid on free cash.

I would be interested in buying WDC but that huge gap in the chart is overwhelmingly noticeable.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext