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

To: still learning who wrote (9224)	4/29/1998 8:50:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 11057

Howdy, could you walk me through a valuation leading to $39 SEG and $36 QNTM? Even under fairly optimistic forward projections, I have a hard time getting the numbers that high. Of course, I didn't add in the market exuberance premium...

To: still learning who wrote (9224)	4/29/1998 8:52:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 11057

Learning, I would, for one, appreciate if you could explain how you analyzed the situation as WDC losing market share, has signficant debt, and has a bad management time. Re: market share, you might want to listen to the conference call and focus on the issues regarding enterprise solutions ramp up and growth, desktop growth, ability to meet new built to order models and 9gig acceptable....also, do some research on Haggerty and the rest of the management team...they were praised a few years ago for leading WDC into its leadership role, their ability to thin out the company and make it one of the most efficient. Also, SEG, wonderful company, QNTM not so hot on but still pretty good. If we're syaing that WDC will hit 30 before yearend, SEG 39 and QNTM 36, heck, i'll continue to buy them all, which is exactly whats being done. Let me check my math....wdc is 19....30 would be about a 55% return in 8 months or about 75% annualized...is anyone saying that they would actually be disappointed with that? Heck, i'd be happy with 25 by year end consider the tough year its been. The key is diversification amongst industries and stocks. Dont place all your eggs in once barrel and dont try to pick the bottom. I remember people saying that wdc was going to 9 when it was 14 7/8. They were waiting. Missed the 40% move from 15 to 22. Pick reasonable places, average in, average UP. Buy quality companies, in this market buy value plays since you might end up out 20 points on a dell, lu, mrk, pfe any day. I am curious, again, how you derived your analysis on market share and your doubt of management. Regards, Steve