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

To: Shi who wrote (7931)	12/2/1997 6:03:00 PM
From: Paul Mathis	Respond to of 11057

Interesting... The announce a 90 million charge and the market cap decreased by ~160 million. Seems like an over-reaction. Especially given the companies access to retail channels and corporate acceptance of the brand which bodes well for the server side business they are going after. I see it as a buy, but I am looking at holding 12 to 18 months. I like the prospects going forward. The price is hard to argue with. Regards

To: Shi who wrote (7931)	12/2/1997 6:08:00 PM
From: Kenwood Sun	Read Replies (1) \| Respond to of 11057

I think in most cases stock's prices is irrelevant to the compnay's earnings. WDC still have earnings for this FY even if their $90 million charges, well, $10~$15 a share is said to be a fair value. What about those companies which never made a penny in a year, while their stock is $40-$50? Some one may say stock price is determined based on the quarterly or yearly growth rate, if that is true, I think WDC will definitely be back to $50's when the company's quarter earning resumes to even $.30/share from $.20/share which is the analysts' currently estimate. WDC may be playing a trick now, by lowering earnings estimate for this quarter, the company can easily beat the street estimate in the next quarter. Who knows.