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

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

SNDK 223.28

+3.8%

Nov 28 9:30 AM EST

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To: Art Bechhoefer who wrote (3221)	11/22/2017 2:30:24 PM
From: SiliconAlley	of 4833

the main reason is the fundamentals, which in the case of WDC, look very appealing – lower than expected debt service costs because of refinancing, and higher than expected gross margins because of soaring demand for solid state, non-volatile memory. Except for the fact that WDC lost its moat, what Warren Buffet looks for in investments. Because Toshiba is not allowing them to participate in new fabs, they lack the future supply needed to meet that soaring demand. WDC has already admitted that they lack the supply required to meet bit growth targets in 2020 and beyond, and lack the supply required to meet their road map in 2020 and beyond. What they will be left with from Fabs 3/4/5 will be older technology primarily suitable for consumer applications. They will not have what they need to compete in the growing enterprise market. On a side note, gross margins are not a function of demand. They are a function of the balance between supply and demand. Should Samsung/Hynix/Toshiba/Intel cause oversupply, soaring demand is not going to help margins.

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