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: storage_savant who wrote (3714)	5/11/2018 12:02:29 PM
From: Unwelcomeguest	Respond to of 4828

SA has made his/her price target known several times and that number is $550. Interpolating from that, I'd suspect current 'fair value' would be around $350 or so. UWG

To: storage_savant who wrote (3714)	5/11/2018 12:22:19 PM
From: SiliconAlley	Respond to of 4828

So what do you think fair value is? You seem to have no new independent analysis other than "everyone else is wrong". I do not agree with the approach of others who are ignorant of the risks involved and arbitrarily peg fair value at a recent high, and saying that nothing has changed. Others also do not understand the difference between fair value and a price target. There is plenty that can go right for this company, and there is plenty that can go wrong. The recent earnings release and conference call raised several red flags, that have been appropriately priced into the stock. The earnings beat can be attributed to hard drive strength, which does not correlate with its growth business. When risk increases, astute investors will seek a lower entry point to compensate for that risk. Given the current risk, the market has fairly valued the stock. There is upside if things go right, and downside if things go wrong. Western Digital will need to prove itself in order to reach its potential. By no means is this a screaming buy, as it was at $35, a time when other posters here were saying the stock had no upside. As for your quote, that is not a statement I have ever made, and do not appreciate being misquoted. Understanding this company requires a firm grasp on the technologies involved, which I have not seen in the recent opinions posted on this board. Valuing a company is not as simple as a single earnings number, and successful technology investors like me have the knowledge to dig below the surface to understand what is truly happening. As for my independent analysis, I have provided it privately to those who have asked.