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

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

SNDK 227.04

+13.3%

3:59 PM EST

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Bruno Cipolla

savolainen

To: Unwelcomeguest who wrote (3544)	3/9/2018 5:28:26 PM
From: bigchad	2 Recommendations of 4828

ETA: $100 per share gets us up to a forward P/E of about 7 1/2 times earnings. There is plenty more room to run. More than plenty of room to run. Already guided to $14 a share for 2018 without the over $1 interest savings from debt restructuring. So over $15 in earnings in the bag for the year. A couple of major catalysts coming up. Next quarter earnings is going to be an easy beat. Not only has NAND pricing held up better than expected I have been reading a couple of news feeds regarding Seagate predicting a very strong quarter which bodes well for WDC. This will ratchet up estimates for the year probably by a buck or two and give a boost to the stock. Another catalyst will be when Toshiba either nixes or renegotiates the deal with Bain and the band of thieves. Toshiba can walk away from the deal without penalty if the deal doesn't close by the end of the month. Given Toshiba's history of changing their minds several times on who the buyers of the NAND business would be, it's not a stretch to think that Toshiba will change their minds about selling out now and leavings billions of dollars on the table. Even if Toshiba's management doesn't want to nix the deal, you can bet the group of activist investors that bought in a few months ago are salivating at getting much better terms for the chip business. This will cause a re-rating for WDC portion of the business and will increase the stock price. When it's all said and done, I see WDC earning somewhere between $16-18 for the year. Slap a 12X multiple on that and my $200 PT for the end of 2018 that I predicted 6 months looks very achievable . GLTA

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