Seagate (STX -2.4%) falls moderately, and Western Digital (WDC -0.7%) only slightly, after the former's FQ4 warning. The companies' recent selloff, together with their low valuations, seems to be limiting downside. Baird is downgrading Seagate to Neutral, but the company has its defenders. Needham is pleased Seagate still expects its gross margin to stay above 30%. Brean Murray is comforted by Seagate's huge stock buybacks ($1.2B spent in FQ4).