I listened to the CC last night. I liked it.
Look, we all know they weren't going to come out and
say they were making 40 cents next qtr., but we are talking
about the number 2 or 3 hard drive maker in the world, with 800+
million in revenues at the trough of a bad cycle. Their management
is top notch, some of the most efficient going.
The tone of the CC was positive, with strong indications that inventories, channel and finished goods were coming down, that all
"compatriots" had seen the same, that their products are being qual'ed all over the place, and that only one major oem hasnt qualed their product but will do so shortly. They were positive on headway with yields and ramping of MR technology and performance of MR tech. They were positive on cash flow before a few exceptional expenses.
They also made some great hints at some new technologies and markets which should prove positive. They also made hints that their product to market model was one of thebest in the industry and that some other large competitors would not be as competitive in the current marketplace.
I liked conference call and would probably increase my rating on the stock, yet you could see a bit of a pull back given itsmove from 17 to 22 in a short period of time.
BTW, the person on CNBC witha price target of 36 in 12 to 18 months?...last I checked thats a very, very nice return. LEts not forget the historical average of the market over the past 50 years, somewhere in the 10,12% range. 35% for two years, i'd take it every time.
Regards,
Steve |
