|Very good summary of the issues Deutsche Bank has cited in their most recent report:|
What most people don't realize right now is that this is no longer an issue about consent rights - Western Digital has them, and they will be upheld by the arbitrators. It is now an issue about future supply. While Western Digital argues they are entitled to participate in future expansion, those rights are far from clear when it comes to expansion outside of the current fabs.
Holding the stock right now is a bet that supply concerns will be resolved. With Toshiba's deep seated hatred toward Western Digital, it is anyone's guess how this issue will play out.
Upholding consent rights may be nothing more than winning the battle, losing the war. While another poster has indicated that this will have no effect on earnings in the next two quarters, ignoring a potential interruption to supply is just plain silly. Traders are not going sit around waiting to see what happens, and sell the stock when supply issues rear their ugly head. They will derisk the stock now, and buy if and when a continued supply is ensured.
Yes, things can change tomorrow, but this is nothing more than a roll of the dice. If you are investing, and not gambling, this is the time to exit. You can always get back in when the odds are better stacked in your favor.