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Seagate (STX -6.4%) and Western Digital (WDC -3.9%) have had a very rough week, as concerns...

Seagate (STX -6.4%) and Western Digital (WDC -3.9%) have had a very rough week, as concerns about weakening PC demand and the end of a favorable supply/pricing climate for hard drives (the result of Thai manufacturing disruptions) take their toll. Also, yesterday, Barclays aired concerns about the impact of solid-state drives (boosted by upcoming MacBook releases) and tablet cannibalization on hard drive demand.
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Comments (4)
  • MikeStrong
    , contributor
    Comments (3) | Send Message
     
    In England was chartered accountant, degree in law, enrolled agent. Assuming the earnings expectations issued by STX's board are still valid or at least will only be 75% of that, I can still buy STX as a yield stock with growth potential, after all they lead in their segment of the storage space. The tsunami may have boosted their margins and a world wide slump may be about to happen but I doubt it. More likely, is money printing and inflation. The great thing about the stock market (now a self styled casino) is that it moves from excessive exuberance to deepest pessimism, as young analysts who have never run anything write their reports. STX, WDC and INTC have to be excellent buys at these levels.
    1 Jun 2012, 02:24 PM Reply Like
  • brbryson
    , contributor
    Comments (2) | Send Message
     
    Precisely Mr. Strong! Not to mention that the world of SSD and NAND does NOT revolve around Apple - holding less than 15% of the market; nor does the Barclay's analyst Ben Reitzes discuss the finite life and stability issues with NAND in comparison to SSD. As you stated, there is great upside just based on pure numbers, STX long term contracts firmly in place, and their long history of strong dividend payout.
    1 Jun 2012, 03:30 PM Reply Like
  • Micah
    , contributor
    Comments (483) | Send Message
     
    Not to mention a $3.5B announced buyback. Market-cap at the end of today's horrible sell-off is $9.24B.

     

    That is 37.8% of the shares that are planned to be retired. How is this possible?
    1 Jun 2012, 04:57 PM Reply Like
  • hx88
    , contributor
    Comments (115) | Send Message
     
    WD has strong support at $30. Maybe the company is buying at this price.
    1 Jun 2012, 06:10 PM Reply Like
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