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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: SiliconAlley who wrote (59998)3/15/2016 2:35:07 PM
From: Art Bechhoefer1 Recommendation

Recommended By
FJB

  Read Replies (2) of 60323
 
Yes, I like WDC potential, but the huge debt they will incur in order to buy SNDK makes the shares risky for the next year or two. I also tend to be skeptical of most mergers on grounds that two different cultures often do not go together very well. I don't know if this is the case for WDC and SNDK, but the physical distance between the two doesn't make things easier. I do believe that SNDK technology will give WDC a big edge in the enterprise server market and will provide formidable competition with Intel.

The $65 target for WDC from a major investment firm seems too high for the coming year. Once the merger takes place, I might be a buyer, but at a price closer to the current price today, near $46.

Art
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