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More on Western Digital/Seagate: BofA is downgrading WDC to Neutral, arguing management's...

More on Western Digital/Seagate: BofA is downgrading WDC to Neutral, arguing management's comments suggest softer-than-expected demand, which is proof the hard drive industry "can't have it both ways for much longer – pricing/margins at high levels, and expected strong demand." On that count, it doesn't help that solid-state drive prices are diving thanks to competition and cheaper flash memory. Nonetheless, Needham is staying bullish on both WDC and STX.
Comments (7)
  • twhite113
    , contributor
    Comments (377) | Send Message
     
    BofA's downgrade has more logical fallacies than a Jerry Springer episode.
    27 Apr 2012, 11:33 AM Reply Like
  • AlanHHI
    , contributor
    Comments (220) | Send Message
     
    I don't think people are giving enough credit to the use of hard drives in the cloud. Another qtr or two and these two will get super hot, and then those of us who are in them now will get out (maybe).
    27 Apr 2012, 11:41 AM Reply Like
  • rasanders22
    , contributor
    Comments (530) | Send Message
     
    SSD's are great for booting up your computer but very small. My 95 gig SSD was $140. My 500 gig was $100 a few years ago. SSD's are not suitable for large volumn storage at current pricing levels. That will eventually change but in the mean time large volumn storage will be dominated by classic hard drives. I hope that Seagate can get into the SSD drive business, or the hybrid drive business.
    27 Apr 2012, 03:33 PM Reply Like
  • Fr33f0rm
    , contributor
    Comments (300) | Send Message
     
    This looks like a tasty dip.

     

    1. To my knowledge, HDDs have longer-term stability and are easier to erase (think DOD-level erasing).
    2. WDC is investing in alternative HD technologies
    27 Apr 2012, 04:23 PM Reply Like
  • rasanders22
    , contributor
    Comments (530) | Send Message
     
    SSD's are longer lasting and easier to wipe. SSD's have no moving parts which is why they they last so long. There is video of one being ran through a lawnmower. SSD's use stored electrical potentials to store data where HDD's use magnetic fields. Magnetic fields are very difficult to get back to 0 which is why they are so hard to wipe. Its called a hystersis loop. Technically, under ideal enviroment, a induced magntic field inside something like iron will never go away. Pretty crazy stuff.
    27 Apr 2012, 04:43 PM Reply Like
  • myjet17
    , contributor
    Comment (1) | Send Message
     
    STX is one of my favorite growth stocks w/greater than 3 percent dividend, a great time to buy.
    28 Apr 2012, 04:51 AM Reply Like
  • Maria Auziliadora
    , contributor
    Comments (628) | Send Message
     
    STX and WDC upgraded and downgraded in less than 7 days do not make sense to me at all. Needham is a very smart person and he is bullish on both!!!
    29 Apr 2012, 06:58 PM Reply Like
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