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

To: Unwelcomeguest who wrote (4137)	4/30/2019 7:16:04 AM
From: Elroy	Read Replies (1) \| Respond to of 4827

The WDC forward guidance seemed pretty good, actually. They are guiding toward flat revenues in Q2 AND inventory declines, that's better than I've heard out of the other NAND makers. Flat revenues and the maker being able to reduce inventory sounds like a cycle bottom to me, if it comes true. We might get something where the stock opens down, and closes up, if there are enough buyers that accept the call that this Q1 result is the bottom....... WDC still has a lot of inventory on its balance sheet, despite writing down a good chunk of inventory because the current NAND sale price is below manufacturing cost. A year ago, when revenues were around $5 billion per Q, inventories were around $2.6b. Now, when revenues are about $3.7b, and despite the company writing down a few hundred million $ in inventory in Q1, inventories are about $3.4b. That's a big problem in a declining price environment. But lets see what really happens. I recall the article that says NAND prices declines are expected to slow to 10% in Q2 from the rapid declines of Q1. NAND prices that I track on the chinaflash web site are already down 5% in Q2, and we've got two months to go....... en.chinaflashmarket.com And WDC says NAND gross margin will remain under pressure for a while. Samsung gave (I think) a much worse outlook for NAND in their quarterly results in Korea this morning. I haven't read any commentary on them, but things for them are I think worse than the situation at WDC, but since Samsung is so big they may continue to push bit prices lower.