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

To: Thomas George Warner who wrote (8068)	12/6/1997 3:45:00 PM
From: Johnathan C. Doe	Read Replies (2) \| Respond to of 11057

T.G.W.; you don't buy a stock AFTER the news is out; you buy it BEFORE the news is out. I bought ASND after an exhaustive analysis of where the bottom on it was and I decided that anything under $23 was close enough from the standpoint of risk/reward. At that point it then is just a waiting game with good odds. WDC was clearly NOT a stock to buy any more of at the same time I was making the choices. I figured it would go lower and it sure as hell has done just that. It might go even lower and WDC may be a company that is losing money if we get another round of revised analysis. Ascend on the other hand is a company that is going to make money next year and a lot of it the year after. That is if they don't get bought at the premium they deserve. The rule has always been buy low, sell high, but with WDC, you want to really make sure what low is and you don't want to buy it for a long long time. Informix comes to mind as a great comparison to WDC at the moment. Considering that WDC might lose money in '98, that low P/E looks very very high to me with WDC priced at $17. I think WDC is a single digits stock; much like Informix. Yes, apples and oranges, but the similarily is in how analysts change on a dime about the prospects. Informix had a bright future right up till March of '97 and it was getting recommendations left and right. So has WDC up until recently. Now nobody would touch either of these with a ten foot pole. I sure wouldn't buy WDC right now. They aren't going to get bought out either. There isn't a consolidation in the disk drive makers like there is in the networkers. Just rambling along here.