Sunil Shah

Solid Execution Makes Western Digital a Compelling Stock

Windows 7 will lead to a material shift in HDD sales, as enterprises upgrade PCs, last done in 2001 for XP. The stars are aligned for this industry, especially since the demise of Fujitsu as a HDD supplier. Rising ASPs is something unheard of!

STX has excelled in botching it up (see my note on STX board: 'Questions for the Board'), whilst WDC has powered away, consistently maintaining a high ROC and gaining market share in selected areas. If you want to listen to a pedigree CC, listen to WDC's last quarter--these guys are good. very good.

My biggest single holding.