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

To: William L. Vu who wrote (9895)	10/23/1998 9:54:00 PM
From: David Howe	Respond to of 11057

Actually they have enough cash to work through 4 more quarters like this (excluding the 1 time charge). This really isn't an issue according to the analysts projected earnings. The most bearish of analysts has their earnings at -1.02 for 12/98, -0.72 for 3/99, -0.25 for 6/99, -0.04 for 9/99 and +0.04 for 12/99. If the worst of the cases presented by the analysts happens, WDC will still have $225 million in cash. They now have $404 million in cash. The analysts would have to be way off for WDC to actually end up hurting for cash. Even if they were to lose $1.24 per share for the next 4 quarters, additional funds would be found somewhere. The earnings potential is too great for this company to go under just because they need some capital to make it through a rough time. All IMO of course. Dave