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To: franklin1 who wrote (2605)10/5/2017 6:17:09 PM
From: SiliconAlley
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No, I would not short this stock due to news risk. I am sidelined and waiting for reentry, if and when there is clarity on long term supply continuity. I have been selling all week, and sold the remainder of my shares at today's market open.

While one could consider shorting this stock in concert with the purchase of a protective call to limit risk, I am personally not comfortable playing the downside.

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From: SiliconAlley10/5/2017 10:11:45 PM
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This post from another board provides a good example of who is buying the stock under current conditions:

"Added WDC to long term account as it hovers about 200MA support. Pays decent dividend and think Toshiba dispute resolves favorably"

These are purely technical traders, essentially rolling the dice that fundamentals will change in their favor. While 200 day MVA is a great trading tool for a fundamentally sound stock, it is fool's folly for those who are oblivious to the deteriorating fundamentals and subsequent risk.

The support for the stock will disintegrate as these traders run out of ammunition, however this is exactly the support that provides opportunity for early exit.

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To: SiliconAlley who wrote (2606)10/6/2017 7:08:41 AM
From: joncon63
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So did Milligan over play, or completely misplay, his hand? Should BOD oust him to repair relationship with Toshiba?

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To: SiliconAlley who wrote (2606)10/6/2017 7:21:13 AM
From: joncon63
   of 2796
 
So did Milligan over play... sorry for double post

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To: joncon63 who wrote (2608)10/6/2017 9:25:27 AM
From: SiliconAlley
   of 2796
 
There is no legitimate information to suggest this.

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To: SiliconAlley who wrote (2610)10/6/2017 9:30:09 AM
From: Sam
2 Recommendations   of 2796
 
While it isn't definitive, I would say that the fact that Bain, Hynix, Apple, Dell, and STX are participating in the Toshiba deal and WDC not only isn't a participant but, even more disturbing, Toshiba is trying ice them out of future fab deals is at least strongly suggestive that Milligan did not handle this situation very well.

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To: Sam who wrote (2611)10/6/2017 9:34:52 AM
From: SiliconAlley
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That's like saying someone didn't handle an interview well because they didn't get the job. You can not infer actions from a result., Toshiba has an agenda, and I continue to see this as stemming from a cultural clash in which Milligan is not at fault. I have written extensively about this.

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To: SiliconAlley who wrote (2612)10/6/2017 9:44:53 AM
From: Sam
1 Recommendation   of 2796
 
I said it wasn't definitive but it is "strongly suggestive". Both you and I believed at the start of this thing that the KKR-WDC partnership would be successful in these negotiations. We believed that they had the inside track and said so numerous times until the last few months. Someone screwed up. The most obvious candidate for that "someone" is Milligan or whoever decided on WDC's strategy for dealing with Toshiba. Ultimately, though, whoever conjured up the strategy, Milligan had to approve it and he has to bear responsibility for it. This isn't just any "result", it could end up being a company defining result if he can't make things right with Toshiba and continue to source NAND from the partnership.

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From: joncon6310/6/2017 9:51:37 AM
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Strong open for WDC today.

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To: Sam who wrote (2613)10/6/2017 9:52:22 AM
From: SiliconAlley
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I steer ships and adapt to the waters. Yes, that was my original belief, until credible information suggested otherwise. Credible information suggests cultural clash, with Toshiba offended by Milligan's protection of his shareholders' interests. This is not screwing up, it is protecting shareholders.

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