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   Technology StocksWDC, NAND, NVM, enterprise storage systems, etc.


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From: Elroy8/4/2021 8:52:02 PM
   of 4711
 
WDC the articles and comments I'm reading say it was a really great quarter, and they handily beat expectations.

I don't follow WDC, but the sales numbers don't say the same thing. They did $4.9 billion last quarter, and expect to do $4.9 - $5.1 billion in the upcoming seasonally strong Q3. So they expect to grow sales about 2% sequentially, give or take 2%.

That stinks, doesn't it?

The tech markets are booming, NAND is booming, no one can get enough product made, prices are rising, and we're coming into the best quarter of the year.

And WDC is going to grow sales by 2%?

I remain curious how this is positive news.

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To: Elroy who wrote (4688)8/4/2021 9:04:26 PM
From: Sam
1 Recommendation   of 4711
 
I think that the fact that there has been little discussion on the board implies that most of us are not all that enamored of WDC.

Nonetheless, the comparison of SIMO to them is a little nuts. They are completely different companies. Different sectors with different characteristics and different challenges.

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To: Elroy who wrote (4688)8/4/2021 9:57:56 PM
From: SiliconAlley
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WDC has massive Cap Ex needs every year.

You appear to lack a basic understanding of how their Cap Ex is funded, why earnings do not tell the whole story, and why their true margins far exceed that stated in the financials.

Fiscal Year 2021 free cash flow was $1.1B, Last I checked, that exceeds the total revenue of the company you continue to pump. I would respectfully request that you take your pumping to the Yahoo boards.

As for your mantra of "hard drives are dead," the conference call clearly states otherwise.

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To: Sam who wrote (4690)8/4/2021 10:03:24 PM
From: Elroy
   of 4711
 
Nonetheless, the comparison of SIMO to them is a little nuts

It's not that they are similar companies, I'm comparing stellar financial numbers (SIMO) with with fairly average if not disappointing average financial numbers (WDC).

The articles I've read all indicate WDC's Q2 was really good. I'm wondering why the article's authors write this/ Perhaps it's just a comparison of actual results to even worse guidance, I don't know.

Someone indicated WDC may have EPS of $10 over the next four quarters. If that's accurate, then yes, it's pretty cheap, at least we can say that.

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To: Elroy who wrote (4692)8/5/2021 2:38:54 PM
From: SiliconAlley
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I'm comparing stellar financial numbers (SIMO) with with fairly average if not disappointing average financial numbers (WDC).

I assume you meant to say that WDC had the superior financial numbers with $2.16 per share non-GAAP earnings versus $1.50 for the inferior company. That is 44% better performance.

$20B in revenue ain't too shabby for a company you refer to as mediocre. That's what, 40 times the revenue of that pimple on a giraffe's butt?

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From: SiliconAlley8/6/2021 2:13:42 PM
2 Recommendations   of 4711
 
For those who have not seen, Yahoo shows next year's projected growth rate at 132.30%. The projected growth rate over the next 5 years is 47.80% per annum. This is 600% growth over the next 5 years.

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From: franklin18/24/2021 5:45:38 PM
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Seagate, Western Digital stocks slump after recent crypto rally

Aug. 24, 2021 11:29 AM ET Western Digital Corporation (WDC) Seagate Technology Holdings plc (STX) By: Brandy Betz, SA News Editor 13 Comments

Sundry Photography/iStock Editorial via Getty Images

Storage companies Seagate Technology ( STX -6.1%) and Western Digital ( WDC -3.0%) were among the S&P 500's largest decliners, Tuesday, as a temporary sector tailwind fades and challenges appear on the horizon.Demand for high-capacity storage drives soared earlier this year due to the Chia cryptocurrency, which uses unused storage for farming. The energy-efficient altcoin debuted in late May at a price of over $1,300 per token. The debut happened just ahead of the broader digital currency selloff, and Chia is currently trading at $259.66.Seagate (NASDAQ: STX) and Western Digital (NASDAQ: WDC) are also facing widespread global component shortages and rising COVID-19 cases, which could complicate the economic reopening and slow the return of enterprise spending.Earlier this month, Western Digital reported fiscal fourth-quarter earnings and sales results that beat analysts' estimates. On the earnings call, the company said it saw a $100 million benefit from Chia-related demand during the quarter. Last week, UBS upgraded Seagate to buy on growth prospects in the data center space. UBS lowered its price target on Western Digital, but kept its neutral rating on the company in place due to cyclical and structural concerns surrounding NAND memory.

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From: Elroy8/25/2021 2:10:40 PM
   of 4711
 
Anybody know what's up with WDC today? It just jumped a few bucks mid-day

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To: Elroy who wrote (4696)8/25/2021 2:15:26 PM
From: Sam
1 Recommendation   of 4711
 
Western Digital in Advanced Talks to Merge With Kioxia in $20 Billion-Plus Deal, Sources Say

Symbol Last Price Change
69.9 +9.14 (+15.0428%)
76.8774 +4.8974 (+6.8038%)
QUOTES AS OF 02:14:37 PM ET 08/25/2021

Dow Jones Newswires August 25, 2021 02:21:00 PM ET

Western Digital Corp. is in advanced talks to merge with Japan'sKioxia Holdings Corp., according to people familiar with the matter, in a deal that could be valued at more than $20 billion and further reorder the global chip industry.

Long-running discussions between the companies have heated up in the past few weeks and they could reach agreement on a deal as early as mid-September, the people said. Western Digital would pay for the deal with stock and the combined company would likely be run by its Chief Executive, David Goeckeler, the people said.

There's no guarantee Western Digital, which had a market value of around $19 billion Wednesday afternoon, will seal an agreement, and Kioxia could still opt for an initial public offering it had been planning or another combination.

The Wall Street Journal reported in March that Western Digital and Micron Technology Inc. were examining potential deals with Kioxia, which makes NAND flash-memory chips used in smartphones, computer servers and other devices. Micron's interest has since cooled and Kioxia has been focused on discussions with Western Digital, which already has deep existing ties with the Japanese company.

Any transaction would require the blessing of the Japanese government, given Kioxia's significance there and the political sensitivities of transferring ownership of such key technology. Washington would also likely play a role, but a deal could fit with a push by the U.S. to boost its chipmaking capabilities and increase competitiveness with China.

Perhaps the biggest regulatory hurdle would be China, which has been increasingly aggressive in its antitrust enforcement, helping scuttle potential deals including Qualcomm Inc.'s proposed $44 billion purchase of Dutch chip maker NXP Semiconductors NV in 2018.

There has been a burst of acquisition activity among chip makers, with the industry accounting for several of the biggest deals of the past few years. Those include Advanced Micro Devices Inc.'s roughly $35 billion purchase of Xilinx Inc., Nvidia Corp.'s roughly $40 billion buyout of SoftBank Group Corp.-backed Arm Holdings and Analog Devices Inc.'s $ 20 billion acquisition of Maxim Integrated Products Inc.

In a sign of how difficult it can be to get such deals across the finish line, Nvidia last week said getting approval for its proposed purchase of Arm has progressed only slowly. U.K. regulators are assessing whether to give their blessing to a deal that also still needs approval from other governments. China only just recently approved Analog's purchase of Maxim, more than a year after the deal was first struck.

Intel Corp. meanwhile, has made clear it is interested in acquisitions and has explored purchasing GlobalFoundries Inc. The chip-production firm, owned by an investment arm of the Abu Dhabi government, is planning an IPO and has so far been unreceptive, however.

(Intel last year agreed to sell most of its memory-chip business to South Korea's SK Hynix Inc.)

Demand for memory chips has been hot, lifted by new smartphone launches, 5G expansion and demand for PCs and servers. Samsung Electronics Co., the world's largest memory-chip maker, last month said roaring demand helped offset weakness in smartphone shipments. In a reflection of the demand, flash-memory prices have shot up in recent months.

That has helped Kioxia's valuation since it backed away from a planned IPO last fall, citing the coronavirus pandemic and market volatility. It was expecting a valuation then of around $16 billion.

Western Digital, which makes hard disk drives, solid-state drives and NAND chips, has a joint venture with Kioxia for manufacturing and research and development that was set to expire starting in 2027. That agreement appears to have given Western Digital a leg up on Micron, which has a market value of $83 billion and could have more easily pulled off a full takeover.

Their existing ties could help make a WD-Kioxia combination more palatable to regulators.

Western Digital shares rallied on the news that it was exploring a deal with Kioxia, which may indicate shareholders are supportive despite what a large bite it would be.

Kioxia, formerly part of Toshiba Corp. and known as Toshiba Memory, was purchased in 2018 by a group led by private-equity firm Bain Capital that included Apple Inc., Dell Technologies Inc., Kingston Technology Co. and Seagate Technology PLC, for around $18 billion. Toshiba retained a 40% stake in the business, which was renamed Kioxia the following year.


Write to Cara Lombardo at cara.lombardo@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com



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To: Elroy who wrote (4696)8/25/2021 2:26:44 PM
From: SiliconAlley
2 Recommendations   of 4711
 
Anybody know what's up with WDC today? It just jumped a few bucks mid-day


I heard they expanded their in-house controller production.

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