|As for WDC, they are hitting on every cylinder plus a few. They got whacked after the last CC, but that was pure BS just like all the other times. The sharks never rest. That pothole has already been erased by a wide margin. They still have margin gains to come from Komag, the notebook business is surging beyond expectations, and they now have the areal density leadership in both 2.5" & 3.5". The world has been turned upside down, Capt. Jack Swallow!|
I couldn't agree more with you. I read your posts on the Yahoo board but the level of the comments there is unbelievably low. I just got into WDC this week by adding positions at both $31.05 and $28.7 and I don't regret it.
WDC's reputation is not stained, unlike Seagate or Hitachi. To prove my point? What is the best rated HDD manufacturer of internal and external hard drives? Western Digital.
So what do I think is coming next? First, I don't think business was or is as bad as many of the ANALysts wanted to make it sound. Also, maybe - just maybe - the elephants are coming to the realization that the storage sector IS HOT and that there is plenty of money to be made. And that is more true in HDD than any other segment. If so, then valuations should rise from their pathetic 8.5x to at least something over 10x. Heaven forbid we should ever see just plain old average tech multiples of 15x.
The world is in an increasing demand for more storage. Even if analysts were to say the future is in solid state media, there is still a lot to happen for them to reach the high storage density and low price point of regular hard drives.
Some analysts are saying that the regular hard drive business is dead due to devices like the Apple iPad coming into play and the usage of cloud computing, which IMO further re-iterates my previous point about high density and low cost.
I think that right now that my predictions, or anyone else's for that matter, is purely speculation based on human psychiatric patterns and not on actual financial statistics. Because if the latter was the case, I wouldn't be seeing WDC hit a 52-week low today.