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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 (4001)	10/26/2018 12:37:26 PM
From: Elroy	Read Replies (1) \| Respond to of 4827

What other factors might be responsible? There is a large supply glut of NAND memory at the moment, and it's causing NAND prices to decline. For WDC this is a double negative whammy since lower NAND prices also increasing the rate at which SSDs cannibalize disk drives. That bad situation trumps everything else for WDC WDC just reported $3.00 EPS this quarter, and expects to report $1.50 EPS next quarter. EPS down 50% in 3 months? Is that the end of the decline, or has a 2-3 year decline just begin in earnest? Who knows? Declining NAND prices and declining disk drive units is a disaster for WDC. We all knew this was coming eventually, the question now is how long does it last? Your guess is as good as mine, but until we're no longer guessing, it's hard to argue that WDC shares should go up in value. WDC said their announced production cuts would begin to affect NAND production in Q3 2019. I think SK said someething similar. So.....the over production problem in NAND is not going away soon. They'll all continue cranking out NAND as fast as possible (that's what you do when the fab costs $5 billion), they've got to wait until the price point gets low enough that the excesss capacity gets soaked up. When will that happen. Back to guessing. Who knows?