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Western Digital is one of the cheapest stocks available today. The fundamentals look excellent and technically the stock is ready to breakout. This thread is mainly for those who are bullish on the stock, short and long term.
PC sales are showing no sign of slump as indicated by the boxmakers. Besides selling to the boxmakers, DD sector benefit from the upgrade cycle. With all these positive environment, the DD sector is still beaten heavily in the past few weeks. There is only one explanation -- Fear -- . This sector pulled down sharply after Michael Dell made comments about easing of component prices.
One needs to remeber that there are only 3 major drive makers-- Seagate, Quantum and Western Digital. As long as they don't start a price war, this sector should do very good. WDC President had indicated in several instances that he is comfortable with the earnings estimates and does not anticipate any price war. Seagate recently slowed their production instead of overproducing and then cutting the prices. All these bode well for this sector and is poised for real growth similar to the boxmakers.
WDC should reach a fair value of $45 - $48 by the end of this year.
To happy investing and profitable returns from WDC!!
DISCLAIMER - I currently own WDC.
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