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

To: Dennis 3 who wrote (49721)	10/10/2012 1:00:15 PM
From: NikhilJog	Respond to of 78752

cool..i just wanted to get your logic. thanks a lot :)

To: Dennis 3 who wrote (49721)	10/14/2012 11:09:19 AM
From: Robohogs	4 Recommendations Read Replies (2) \| Respond to of 78752

WDC/STX I post here at risk as the moderator does not like my postings due to usual options nature. I just wanted to add one point to debate on disk drives. The big question to the HDD makers is does enterprise/system/data center growth grow faster than consumer shrinks and what is ASP/margin impact? As to question earlier on margins, they had been noticeably above trend earlier in year, noticeably. They have started to come in. Most of increase was Thailand but some is industry structure. The question is how much does going to effective duopoly help - and do SSDs get close enough in price to take back to more competition. In financials, STX and now WDC are massively buying back shares. At 4X PE, you only have to survive a few years fir huge returns. Abd the cloud should drive demand long enough for this. Even the yellow ages guys made it long enough for the PE guys to get in and out with a few exceptions. This decline should be much slower and prices paid for the stock are much cheaper. STX is a big part of my portfolio. Jon