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

To: toastr who wrote (3682)	5/2/2018 1:58:32 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 4828

Threat of oversupply? That's a little too broad brush an assumption. It's an indication that NAND memory demand for smartphones may be leveling off a bit, owing to the fact that some smartphone markets in the US and Europe are beginning to look saturated. But the assumption of falling demand in a period of increasing supply seems to overlook the huge growth in cloud and enterprise servers. And the negative price action of WDC and MU especially seems also to be a reaction to a comment from the Apple conference call, expecting memory prices to be softer this year. Even if true, companies with high debt levels facing a leveling off of demand could show significantly lower net income owing to debt service costs being spread over flat or declining revenues. WDC has been getting out of its costly debt over the past couple of years, thanks to strong NAND prices, so it may not be all that affected by flatter sales of flash memory. Art