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

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

SNDK 195.96

-20.3%

Nov 20 3:59 PM EST

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To: Charlie Smith who wrote (3740)	5/15/2018 8:44:08 AM
From: Unwelcomeguest	Read Replies (1) of 4828

So, WDC management believes their shares are underpriced too. If they actually did purchase $1B worth of shares, that would amount to around 12 million shares out of 299 million outstanding, about 4% (assuming they could purchase for $82/share). However, rarely do companies actually follow through on share repurchases. They may purchase half that amount, if that. Frankly, I'd rather they use the funds to pay down debt. The interest they are paying is higher than the dividend on common shares. If they wanted to bring down the weighted average cost of capital, that's what they would do. So, I think the share repurchase announcement is a red herring simply intended to bolster the stock value because that is tied into their debt negotiations. JMHO, UWG

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