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 : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Yang who wrote (7115)	11/2/1997 2:19:00 PM
From: Dr. Bob	Respond to of 11057

Kevin, I agree with your points; I'm long WDC (and SEG) as a result. My only point was that there's enough risk in WDC and the DD makers in general that this is not "load up the truck" territory. Chances are the investment will turn out well, it's just not a no-brainer (yet). Your questions related to how has WDC done during times of SEG dumping is precisely the issue - WDC missed estimates, and did so in large part because of the decreased margins due to SEG dumping. So "If these numbers are good, we don't need to worry" translates to me into - WDC did OK, but there's still reason to worry. This stock (and SEG, and probably APM, RDRT, Quantum, Hutchinson, etc.) has lots of potential at this level, but a moderate amount of risk, too. When the trailing P/E gets down to 7 or so, as it has done in the past, then it's time to "load up the truck", because downside risk will be negligible. Bob