To: TCGNJ who wrote (8273 ) 12/24/1997 4:56:00 PM From: steve goldman Read Replies (1) | Respond to
I have recently been going long wdc and will continue to do so. You very rarely can find companies with such large revenues, such established and well respected management, with great profit potential (remember, they have been able to make the 1.00 per share per quarter, its not a wish, they are having pricing pressures which should resolve themselves in 12 to 18 months), trading at such a steep discount to revenues. Take the 5billion in sales and put a 1% change in margins to the bottom line. its a huge number per share. This is what you get with such an investment. I look at wdc as a great investment in a great company. Nonetheless, nothing is a gimme or a layup. Stocks go to zero. This might be one of them, but I don't think that it will happen..management is too good. YOu can't expect them to fix things in 2 months...give them 1 year to 2 years and it should be a profitable investment. If you pay 15 now and expect to get 21 by year end, look elsewhere.....the days of 4 point wdc swings are over.
