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Technology Stocks : WDC/Sandisk Corporation
WDC 163.00-0.4%Nov 7 9:30 AM EST
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To: Sam who wrote (59994)3/15/2016 11:23:04 AM
From: Art Bechhoefer1 Recommendation

Recommended By
FJB

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The amount of debt that WDC incurs for its purchase gives one pause, at least if one holds WDC stock. I've been skeptical of holding WDC shares, inasmuch as even a slight downturn in overall demand for both HDD and SSD could cut earnings at WDC sharply, given its debt service costs.

The most that can be said for SNDK shareholders waiting for the merger to take place is that they are likely to get cash and stock worth about $78, with only a long term prospect for gains in WDC share price to $65, as targeted by one investment firm. I'm not interested in holding WDC because of its debt obligations.

That said, I'm still interested in investing in flash memory and wonder if Pure Storage (PSTG) would be a good alternative at a time when its shares have dropped somewhat below recent highs.

Art
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