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.
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.
Given the current state of the WD/Toshiba relationship, and absent any resolution on long term supply out of Fab 6 and beyond, my near term downside target is $60. More downgrades are on their way, highlighting supply concerns, and the stock will be derisked.