WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 159.98

-2.2%

2:34 PM EST

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To: franklin1 who wrote (60104)	4/15/2016 10:43:47 AM
From: SiliconAlley	of 60323

The total debt service cost is approximately $3/share per year. This is easily serviced by the combined current free cash flow of both companies. In addition, management has already stated their intention to continue the dividend, and given management history, this statement should not be taken lightly. Since this statement, their interest costs have risen by approximately 30 cents/share per year, and has no substantial impact on their ability to pay. There is more than enough free cash flow to both service debt and pay the current dividend. Any potential reduction in dividend would be the result of some future event, substantially affecting cash flow. This would be some macro event, affecting the economy in general, and unrelated to the business itself. If you're concerned about such a macro event, you don't want to be in any stocks. But if you want to be in stocks, there is substantial upside potential ahead.

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