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 (4379)	3/27/2020 12:20:15 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 4826

TREFIS asserts that " . . . we believe it could potentially recover to pre-crisis levels at least, and could possibly rise further to around $80 levels once economic conditions begin to show signs of improving." This could happen only in a bull market, not in the current bear market, and certainly not in a period of recession, which will probably occur by the end of the June quarter (it takes two consecutive quarters of negative growth to define a recession). It is a mistake, in my view (based on more than 60 years active investing), to assume that ANYTHING in the market will return to pre-crisis levels. If the the market recovered half its losses, even that would be remarkable. If there is a case for WDC recovery, it is based on the need for more solid state memory, either in laptops, tablets, or smartphones, to assist those who will be spending more time and energy working or studying from their home. Along with this, we should see increasing demand for cloud storage, which again should benefit WDC. At least in the field of solid state memory, WDC remains one of the tech leaders and is still apparently reporting gross product margins well above average for the industry. Art