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

To: Jeff Mills who wrote (7188)	11/7/1997 8:27:00 AM
From: steve goldman	Read Replies (2) \| Respond to of 11057

Stock will get knocked around big time at the open. Be reactive, not passive. Be committed to stick it out or kick it out. Don't sit and pray. Regards, Steve

To: Jeff Mills who wrote (7188)	11/7/1997 8:57:00 AM
From: xamir	Respond to of 11057

All someone knew this. exchange2000.com

To: Jeff Mills who wrote (7188)	11/7/1997 9:06:00 AM
From: Frodo Baxter	Read Replies (1) \| Respond to of 11057

Whoops! Guess we get another reminder that a tech stock with a low PE is the kiss of death. "Additionally, the company is considering taking potential non-recurring charges in the range of $15 million to $30 million. The actions being contemplated are associated with the company's phase-out of thin-film head products in favor of hard drives featuring newer magneto-resistive heads." Looks like their depreciation schedule for their drives were, umm, overly optimistic. I guarantee this charge will be taken. The stock market is earnings-crazed. One way companies meet lofty expectations is to cook the books: stretch depreciation out, show better earnings for a while and then take out a "one-time charge" when end-of-life occurs earlier than concocted. This is one reason why P-E is just at the high end of the historical band but P-B is waaaay high and unprecedented. p.s. How does WDC's cash position look now? In 20/20 hindsight, their stock buyback program was another bad spawn of the bull market.