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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: oldbeachlvr who wrote (60230)	5/11/2016 1:00:21 PM
From: SiliconAlley	Respond to of 60323

I think there are likely more SNDK holders that want to hold WDC, but have been afraid to pull the trigger early. While some will sell off their WDC, I believe more will not only hold their WDC, but put their $67.50 cash into new WDC shares. In addition, there are massive short positions, related to arbitrage, that are being unwound. This looks like a bottoming process to me, and once the sellers are washed out, we're cleared for a long term massive run. I'm ringing the bell, and saying that yesterday morning marked the low, related to some last opportunity arbitrage shorts. We're in a huge long term support range, and the dividend yield is king right now. The stock is down for multiple reasons, including arbitrage, STX fear, and fears the dividend will not be continued. There are some who have misread the credit facility agreement, with clauses written in the negative, and believe that payment of dividends is prohibited. This is not the case as long as WDC is not in default, and they are permitted a minimum of $625M a year in dividends, which more than covers the current dividend on post-merger diluted share count.