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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dennis 3 who wrote (49719)	10/10/2012 12:12:24 PM
From: NikhilJog	1 Recommendation Read Replies (1) \| Respond to of 78746

Dennis - What i asked you were couple of very fundamental questions. I never spoke about fraud, nor did i ever say that WDC is a value trap - it was a question i posed. And thats because I disagree with the notion that you just invest in something because its trading at low P/E. Now if you think they appear depressed bcs of perception of death of PC's or thai flood, its all good. However, its also a fact that PC sales are going down. I just wanted to know what your rationale was. AND on Windows 8 - If I ever believed that a business will become huge or substantially go up just because of Windows 8 - i rather have them file for chap 11. So i don;t think in those terms.

To: Dennis 3 who wrote (49719)	10/10/2012 1:10:02 PM
From: Sergio H	1 Recommendation Read Replies (2) \| Respond to of 78746

Overall, WDC's financials do look good, but there's some questions. I do not think it is a value trap either. On the financial statement, there's a large increase in R & D spending as well as an increase in selling and administrative costs. WDC is looking into expanding its products to compete better? On the balance sheet you'll find large increases in goodwill and intangibles along with a large increase in long term debt. I didn't look into what this is about. Maybe acquisitions? On the plus side is growth in retained earnings and treasury stock, and the co. is solid on free cash. I would be interested in buying WDC but that huge gap in the chart is overwhelmingly noticeable.