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Western Digital (WDC) -3.6% AH after guiding on its FQ1 call (webcast) for FQ2 revenue of...

Western Digital (WDC) -3.6% AH after guiding on its FQ1 call (webcast) for FQ2 revenue of $3.55B-$3.7B and EPS of $1.65-$1.85, below a consensus of $4.13B and $2.43. Seagate (STX) -4.5%. Expectations for hard drive shipments have been deteriorating as PC sales dive, but it looks as it they need to fall further still. Controller chip supplier Marvell (MRVL) warned last week. Seagate reports on Oct. 30.
Comments (4)
  • WDC atock price manipulators in full force on this one.
    Article after article said that WDC would meet or exceed expections in their earnings report today. I didn't trust them so I looked at the reports from their control board supplier who said that sales to STX and WDC were down and their forecast was down sharply so I sold my WDC at a small loss on Monday before the close and subsequent earnings report. Then I was mad at myself when I watched the buyers ramping up the price at the close and into the after-market. I see an article saying that WDC would report triple their revenue. I thought I blew off a big increase. Then the conference call data comes out with forecasts slashed. I watched the stock price fall back down.. now down 6.32% for the day. I can't even imagine how many people lost money on WDC today because they read some of the same articles that I did that said the earnings report would be favorable. It was in parts but the forecasts were what killed it.

     

    I am really starting to think that these so-called "articles" are nothing more than manipulations to trick investors with. Seems like every time I follow the trend of these articles I subsequently get burned with the opposite thing happening than what they said. Is it just bad luck or ignorance or are these article writers deliberately tricking investors? Shouldn't people that do this stuff deliberately be held accountable?

     

    22 Oct 2012, 06:27 PM Reply Like
  • MRVL warning was all the hint we needed that guidance would be a bummer.
    22 Oct 2012, 06:40 PM Reply Like
  • Yup. I have to wonder why article writers who follow WDC and STX don't clue people into stuff like that.
    22 Oct 2012, 06:50 PM Reply Like
  • STX and WDC trade at low single digit multiples, they offer over a 4% and 2% yield respectively, and they both have multi-billion dollar buybacks announced which will extinguish a third of each of their shares when said and done.

     

    Buy these stocks, add to them on dips, wait out the short-term cyclical issues, and you will be rewarded in the long-term.
    22 Oct 2012, 08:40 PM Reply Like
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