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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 200.32+2.2%Nov 21 9:30 AM EST

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To: SiliconAlley who wrote (3613)4/16/2018 8:35:01 AM
From: Unwelcomeguest1 Recommendation

Recommended By
bigchad

  Read Replies (1) of 4828
 
Sorry for the belated response. Didn't worry about investments over the weekend. Here are the key ratios for WDC and STX pulled from my eTrade account. Maybe you see something I don't...

WDC
FINANCIAL STRENGTH (MRQ)
Quick Ratio2.03x

Current Ratio2.55x

Debt/Equity1.07x

Debt/Assets0.40x


WDC's debt to equity ratio indicates that it has been as aggressive with using debt to finance growth as compared to its peers in the Computer Hardware industry. The resultant effect on earnings would be as volatile as related companies.

STX
FINANCIAL STRENGTH (MRQ)
Quick Ratio1.25x

Current Ratio1.58x

Debt/Equity4.60x

Debt/Assets0.56x


STX's debt to equity ratio indicates that it has been more aggressive with using debt to finance growth than 77% of its peers in the Computer Hardware industry. The resultant effect on earnings would be more volatile than related companies.

Also, STX revenues have been declining for the past five years, from $14.5B to $10.7B. During the same time period, their EPS has dropped from $4.81 to $3.15. WDC's estimated EPS for 2018 is $14/share while STX is $5/share. Maybe I am missing something. If so, share it with all of us.
UWG
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