Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Unwelcomeguest who wrote (3711)	5/10/2018 4:50:44 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 4828

UWG -- There is a basis for arguing that demand for certain WDC products, especially NAND flash for smartphones, is declining worldwide. Whether that demand is countered by still rapidly increasing growth in cloud/enterprise server applications is debatable. Meanwhile, we also know that wafer capacity is increasing, but the supply should still be sufficiently limited to keep NAND flash prices from falling, thereby maintaining high gross margins. I'm looking mainly at NAND flash, but because of the demand for more hard drives in the server market, this should also remain profitable for WDC. Taking it all together, it certainly looks like the price of WDC is unjustifiably low. A lot of volatility, however, is caused by short term traders and speculators who look chiefly at price and volume changes, day to day, or even minute by minute. They have no long term vision, nor do they really care about long term trends. So if one argues that the stock looks grossly undervalued for the long term, that's probably the right view. Art