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Technology Stocks : WDC/Sandisk Corporation
WDC 169.99-2.4%Nov 11 3:59 PM EST
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To: Art Bechhoefer who wrote (59877)2/12/2016 4:12:31 PM
From: Bruno Cipolla1 Recommendation

Recommended By
JCnieuwenj

   of 60323
 
I agree,
WDC at 13B$ revenue (shrinking) is still making 1.1B$/year (2015, shrinking), 464M$ are distributed each year as a dividend, (231,72Mshares at four quarterly dividend of 0.5$ each). The number of shares will increase by 40.8 millions due to those issued to Unisplendour (3.780B$ at 92.5$/share).
WDC had a 27-30% gross margin in the last 5 years, SNDK 27-50%.
WDC SSD margins are reportedly lower due to no in-house nand production.
Sources say it would be reasonable to expect WDC overall GM gradually increasing 5-15% due to synergies and SNDK NAND production.
Projections are for 8-10$/share (1.8-3B$/year) profits in a couple of years.
That should make quite comfortable continuing a dividend payment, interests on about 12B$ (19B$ for SNDK, less Unisplendour money, less cash at hand) of new debt and even some buyback if deemed useful.

So much so far.
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