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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Bird who wrote (8781)	2/16/1998 1:36:00 AM
From: Frodo Baxter	Read Replies (2) \| Respond to of 11057

>WDC's book value is now about 620 mil Actually, 540 mil, but who's counting? Take a breath, repeat this mantra after me: if the stock's going up, it must be a buy.

To: Jonathan Bird who wrote (8781)	2/16/1998 5:23:00 AM
From: shane forbes	Respond to of 11057

Jonathan: Yes I agree there is a warning flag. But I knew there was a much larger warning flag before the extra capital was raised - could the company have survived the downturn? Put it this way: Mgt. realizes things will get worse before they get better. What if they are more than right and things do get a lot worse over the next little while? What if in this situation they did not have the 500 million? Then poof there goes the investment to $0.00! NOT a good thing. That's why I said I'm a bit happier that the company has a "cushion" now. Tough to call about how much of the money is going to go for day-to-day operations and how much will go for infrastructure investment. But with the cushion + no long term bank debt (is this right?), we have some, as Buffet would say, "margin of safety". (Okay I know Buffet would not touch stocks like these. And yeah "margin of safety" is stretching it. Just to be melodramatic.)