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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc. -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (3221)	11/22/2017 2:30:24 PM
From: SiliconAlley	Respond to of 4833

the main reason is the fundamentals, which in the case of WDC, look very appealing – lower than expected debt service costs because of refinancing, and higher than expected gross margins because of soaring demand for solid state, non-volatile memory. Except for the fact that WDC lost its moat, what Warren Buffet looks for in investments. Because Toshiba is not allowing them to participate in new fabs, they lack the future supply needed to meet that soaring demand. WDC has already admitted that they lack the supply required to meet bit growth targets in 2020 and beyond, and lack the supply required to meet their road map in 2020 and beyond. What they will be left with from Fabs 3/4/5 will be older technology primarily suitable for consumer applications. They will not have what they need to compete in the growing enterprise market. On a side note, gross margins are not a function of demand. They are a function of the balance between supply and demand. Should Samsung/Hynix/Toshiba/Intel cause oversupply, soaring demand is not going to help margins.

To: Art Bechhoefer who wrote (3221)	11/22/2017 3:23:52 PM
From: bigchad	Read Replies (1) \| Respond to of 4833

No one is buying WDC now and WDC isn't selling because no one would be willing to pay an over 100% premium which is what it is worth right now without a buyout premium. Wait til it hits $200 then id be willing to take $250 a share if Apple or whoever wants. By this time next year they will be about a billion or less in net debt. They will also be 6 months away from being able to get out of their high interest rate debt. They are guiding to $13 in earnings next year but they have consistently underguided and have beat by a substantial margin the last year and a half and things are accelerating. Not only is their NAND business improving analysts are looking for their HDD business to reaccelerate in first half 2018. Don't be surprised if you see well over $15 in earnings next year and by this time the Toshiba issue will be in the rear view with whatever solution that comes about at least being neutral but more likely very favorable over what WDC has now. Put a very conservative 13-14 multiple and you have over $200 stock. Very simple. Don't listen to trolls and make a lot of money. Better yet put the trolls on IGNORE as I have and all the garbage here gets cleaned up quickly!!!! Happy Thanksgiving!