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

To: dan.rosengold who wrote (3231)	11/27/2017 10:12:29 AM
From: Sam	Respond to of 4833

Moore raised his EPS estimates for Micron and increased his price target on the stock to $55 from $39 Why was he still at $39? Huberty says she expects NAND prices to fall "7-15% quarterly". How many quarters? First quarter drops of that magnitude aren't all that uncommon historically. The drop is coming from high levels. And there will be cost cuts as well, which will alleviate the ASP drops. And a good deal of WDC's revenue comes from value added products, not from raw chips. Product mix will matter more than ever now. This would affect Hynix much more than WDC, at least insofar as NAND is concerned. Hynix sells much more DRAM than NAND. That said, I agree with Moore about Micron. It should be differentiated from WDC, as should Hynix. And Micron is coming back pretty strongly right now. Back to $48.30 from a low of $47.09, although it is fluctuating pretty wildly.

To: dan.rosengold who wrote (3231)	11/27/2017 4:03:18 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 4833

The Morgan Stanley downgrade of WDC is interesting, especially in view of its outperform recommendation near the end of April, when WDC shares were selling near $89. Looking at other Morgan Stanley recommendations in the technology or semiconductor sector reveals that the firm doesn't have a great batting average. Several other investment firms, moreover, still maintain buy recommendations. Either Morgan Stanley is extremely wise (I'm somewhat doubtful of that) or numerous other firms are utter fools (also doubtful). What one can draw from the downgrade is an intent to depress the price of WDC and similar stocks, in an effort to obtain a better, less risky buying point. In that respect, Morgan Stanley is once again successful. As for the reasonableness of their analysis supporting the downgrade, it appears they overlook too many factors that are likely to make a difference (to the upside) in the next six months, if not more. Art