Western Digital (WDC) Message Board

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Technology Stocks : Western Digital (WDC)

WDC 163.26

+3.5%

Nov 28 12:59 PM EST

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To: mike mccann who wrote (7901)	12/2/1997 9:04:00 PM
From: mike mccann	Read Replies (1) of 11057

Two years ago WDC traded in the $7 range, with a PE of about 6. Fundamentals were much better back then. I don't know what the company means when they say "modestly profitable" for fiscal '98, but since they earned .67 1st Qtr and claim they'll break even 2nd Qtr, I assume that means they'll lose money 3rd and 4th Qtr's. So they'll probably earn a nickel or a dime for the whole year. But let's be conservative and put their fiscal '98 earnings at a quarter per share, and raise their PE above their historical ratio to say 10. This would give you a stock trading at $2.50. Can't argue with the math. Mike

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