It helps to look at the fundamentals. They justify neither a price of $500 nor as low a price as $80. In fact, one might consider what might occur if WDC DOESN'T prevail at all. Earnings will continue to rise because of faster than expected growth in demand, especially for enterprise and cloud servers. And WDC will not be saddled with additional debt at a time when interest rates are beginning to rise. The issue that WDC can capitalize on, whether it owns or controls the rest of the joint venture, or whether that roughly half portion goes to a competitor, is the potential loss of its proprietary technology, most of which was developed by SanDisk. That issue may have to be resolved in court, and the threat to anyone buying Toshiba's half should be enough to make a generous deal with WDC more than just a wish.
Earnings will continue to rise because of faster than expected growth in demand,
And meaningless if you don't have the supply to meet the demand. All you need to do is go back to the SanDisk days and see what happened when they were supply constrained and couldn't meet demand. Rising earnings was not one of the things that happened.
Are you serious? I asked you privately what I should do last night? Are you sure you have the right person? You are either confused or outright lying now, and have lost a considerable amount of respect not that you care anyway. And please don't give yourself too much credit assuming that everyone on this board makes money solely at your discretion.
For those who may take solace in Bain's desire to work with Western Digital, please remember that Bain would not even have majority control of TMC. Without Toshiba, this will only be resolved in the courts and arbitration. The Bain announcement is essentially feel good PR prior to the Toshiba shareholder vote.
Markets don't go straight up, and they don't go straight down. When markets reverse, based on deteriorating fundamentals, there are always opportunities to exit. This week has been one of lower highs and lower lows, and absent any substantial fundamental changes, the trend is now down. New reports are being digested, and next week will be natural sequelae of digestion.