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

To: Elroy who wrote (4002)	10/26/2018 3:53:20 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 4827

After reading the transcript of the WDC conference call, I'm inclined to believe that: 1. There really is a falling off in demand for NAND flash, both for smartphones and for enterprise servers. 2. Additions to capacity by competitors, especially in China, are not likely to show up in the next few months, allowing WDC to reduce production of new wafers without losing market share. If there were excess capacity throughout the sector, then prices for WDC NAND would continue to fall, regardless of WDC production capacity. But if there is little current excess capacity, which I believe may be the case, then flash prices will stabilize. In any event, this kind of drop in stock prices can trigger further declines, regardless of individual company prospects. Art