WDC, NAND, NVM, enterprise storage systems, etc. Message Board

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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 206.10

-14.7%

Dec 12 3:59 PM EST

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To: neolib who wrote (538)	8/1/2016 5:39:48 PM
From: Art Bechhoefer	1 Recommendation Recommended By david1951 Read Replies (4) of 4836

neolib -- It's becoming clearer that Western Digital's hard drive business will continue to be a drag on overall profits. The SanDisk side of the business appears to be growing nicely, but even here, growth may be curtailed by weaknesses in worldwide economic growth. What gives institutional investors misgivings is the high debt level incurred in the purchase of SanDisk. The question is not, as some on this thread believe, whether WDC has enough cash flow to service its debt obligations. The real issue is that there are many good quality tech companies with low price-earnings ratios AND low debt levels, making those companies preferable to WDC for long term appreciation. The present price near $46 should be sustainable and, if economic conditions improve, could allow WDC shares to recover to the mid $50s, perhaps in the next six months. I doubt very much that some analyst predictions of price gains to $60 or more will materialize even in a year. Still, the dividend covers some of the risk of holding the shares during this period. Art

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