Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Full Disclosure Trading -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (6508)	7/25/2003 1:37:37 PM
From: BWAC	Respond to of 13403

OT I kinda disagree. As long as WDC doesn't incur substantial debt again then they might do ok.

To: Gottfried who wrote (6508)	7/25/2003 2:22:07 PM
From: Sam Citron	Read Replies (1) \| Respond to of 13403

OT I think it's over. That certainly has an air of finality to it. The stock has had a nice run lately, but is it overvalued? The story I usually hear is that on the supply side the industry has become rationalized with a smaller number of profitable manufacturers, and on the demand side, the market has grown beyond PCs to newer applications like Tivo PVRs. In aggregate this has lead to a healthier pricing environment. Is there reason to think that these favorable trends are over? I notice that MSN's predicted growth rate for WDC for the next 5 years is 7.5% compared to 17.5% for the computer storage industry. MSN pegs Seagate at 7.3% and Maxtor at 15% (reflecting its own integration issues). As far as WDC's FY2004 growth rate of 324.1% is concerned, I suppose you're right, it's over. In any case, Needham's analyst who downgraded WDC today said: "As we suspect that the integration and operational turnaround of Read-Rite is likely to take at least six to 12 months, we believe there will be ample opportunity to upgrade the stock once again given evidence of success." I suppose we'll just have to wait and see. Sam