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

To: steve goldman who wrote (7259)	11/8/1997 9:54:00 AM
From: Sandy	Read Replies (1) \| Respond to of 11057

Come on, come on. Let's figure this out, figure this out.

To: steve goldman who wrote (7259)	11/8/1997 10:39:00 AM
From: Berney	Read Replies (1) \| Respond to of 11057

Steve, The flowers you and I keep landing on seem to be wilting. Thanks for a well-reasoned, thoughtful and thought-provoking discussion of WDC. The examples of the last few weeks sure leads one to understand why Buffett doesn't like technology stocks. But then, his darlings (i.e., KO, G, MCD) haven't been doing all that well either. With S3 I left with a 10% haircut, here I stay with a 30% haircut? The sad thing is that if you and I were really watching the tape and chart, we would have seen that there was a clear and decisive downward trend that developed 8/20 and has not slowed. Well, more tuition paid to Investment Education Institute of Higher Learning. The problem now is that this puppy is going to take some time to heal and one must ponder whether to take the tax loss and come back in thirty days? Well, I've got a couple of days to ponder. Berney

To: steve goldman who wrote (7259)	11/8/1997 12:27:00 PM
From: STOCKaHOLIC	Read Replies (4) \| Respond to of 11057

Steve, I was tempted a few times to buy some WDC Friday. A few things are kept (and keeping) me from jumping in. First, take a look at Quantum. It took a 15% hit in sympathy. I would be really pissed if I was long QTNM Thursday night. I also believe they will be warning in the near future. If this happens, the rest of the DD stocks could easily get hammered again. Second, when companies warn, they usually follow with additional bad news. I don't believe the bad news is over for WDC (just my opinion). Third, I believe the 4th quarter of '97 will prove that technology companies can't keep growing earnings exponentially. This should hit the whole tech sector. I still like WDC. I own a WDC drive myself. I just don't think the bad news is over for the DD sector. Once Quantum warns and gets chopped, I'll be buying the DD's big time. For now, I'm watching and trading. Also, looking over my shoulder for the BIG MARKET CORRECTION. Everyone is waiting for it. I'm beginning to think a correction would be healthy. Did I just say that? Maybe I should have my head examined! Good Luck Phil

To: steve goldman who wrote (7259)	11/8/1997 3:20:00 PM
From: Frodo Baxter	Respond to of 11057

>Take it, break it down, break it down, tear it apart, tear it apart, and see what parts you disagree with. Always be wary when a trader issues fundamental advice. WDC is not in control of its own destiny right now. They have the worst technology of the drive makers, the least diversified product line, and unreliable suppliers (sole-sourced APM 1.7 heads). Whereas QNTM and SEG issue debt to fund research and expansion, WDC has no debt, and uses excess cash flow to buy back shares. This has left them in a commodity niche that works great in undersupply (last year) and implodes in oversupply (this year). A couple of margin points off where they projected, and everything became vulnerable. Ask yourself, this is the company I want to own? Note: This has nothing to do with BTO. WDC said as much during the cc. Fujitsu lowered prices in the channel, not with OEMs.