Western Digital (WDC)

[blid2def]

WDC closed at $35.41 on Friday, and this analyst set a target of $2.75! Hahaha... read the quote below, and then my comments after that to see why.

Sauce: http://www.newratings.com/en/main/compa ... id=1745369

Western Digital downgraded to "sell"
05/13/08 - Caris & Company

NEW YORK, May 13 (newratings.com) - Analyst Ann Kohler of Caris & Company downgrades Western Digital Corp (WDC) from "average" to "sell," while reducing her estimates for the company. The target price has been reduced from $9.00 to $2.75.

In a research note published this morning, the analyst mentions that Western Digital’s latest 10-Q filing indicates that the company would not be able to comply with its covenants and the failure to do so may lead to inability in borrowing on account of its revolving credit facility. The inability to meet with the debt covenants is expected to fuel concerns surrounding Western Digital’s ability to continue as a going concern, the analyst adds. The company has posted its 1Q results short of expectations due to the sluggish performance of the legacy Giant refineries. The EPS estimates for 2008 and 2009 have been reduced from $0.98 to $0.15 and from $2.50 to $1.40, respectively.

So... I'm like WTF!? Giant refineries? Since when did Western Digital do oil stuff? Then look at the price values - don't make cow sense lah. So check check check... wahlao eh, she's talking about Western Refining (WNR), but cock up and put down WDC instead. Wahlao eh... can kill a company one leh this kind of report. Bloody editor also never check.

BTW, WDC broke out from 34 last night. Too bad I ran out of money, so only could take a tiny position.

[kennynah]

maybe can even get sued for this misreporting...haha...

congrats lah... your small position, is not that small one...i know...

[millionairemind]

GR,

WDC chart very swee swee... broke all time high on good volume.. I might jeeped some next Monday..

Good ROE, improving margins, good earnings momemtum in the last Q..

Congrats..

Cheers,
MM

[blid2def]

MM, This is for you:





But really, the position so tiny, the profit can only be used to pay commissions haha. Monday have to rejig portfolio again and hopefully if it's still good looking, can grab a bit more. Still below 5% of pivot point (at this point), so can try try. Hehehe.

EDIT: Or maybe someone really kena sabo on Monday, throw at US$9.00.... wahlao huat tat loh (although at some poor chap's expense).

[kennynah]

still think semicon can make it in the short term...i think not... it'll take time to release these folks and the golden handshake compensation will immediately dent bottom line first before the benefits kick in... another HKC situation here too....

but the consolation here....a mere 5% of workforce...or 2500 receiving the axe....

**************
Western Digital to eliminate 2,500 jobs; lowers Q2 revenue forecast - Update
12/17/2008 9:41 AM ET

(RTTNews) - In order to adjust the company's cost structure to a softer demand environment, hard drive manufacturer Western Digital Corp. (WDC: News ) Wednesday revealed certain actions that include elimination of 2500 positions or 5% of its total workforce, reduction of executive pay and lowering of capital expenditure for fiscal 2009. The company also lowered its revenue outlook for the second quarter.

The restructuring initiatives are planned to be completed by the end of March 2009, leading to expected charges of about $150 million, to be incurred across the December and March quarters. The company expects to save about $150 million annually through these actions.

The storage products maker now expects revenue for the December quarter to be in the range of $1.7 billion - $1.8 billion. On average, 11 analysts polled by First Call/Thomson Financial expect second-quarter revenues of $1.98 billion, with the low and high ends placed at $1.69 billion and $2.13 billion, respectively.

On October 23, the company, which competes with Seagate Technology (STX: News ), had forecast second-quarter revenues in the range of $2.025 billion - $2.150 billion.

The Lake Forest, California-based Western Digital noted that market conditions have changed significantly since it issued the prior forecast with demand for hard drives falling much below the expectations outlined in the original revenue guidance. Industry pricing is also significantly more competitive than forecasted, it said.

In order to match supply with demand, Western Digital is temporarily halting the majority of its manufacturing operations from December 20 through January 1, 2009. The company's executive officers, board of directors, and senior management will have their compensation reduced. Capital spending for fiscal 2009 will be lowered to about $500 million from $750 million.

The world's second-largest maker of hard-disk drives also plans to reduce manufacturing work hours by about 20% from reduced use of temporary workers, cut in overtime shift and employee attrition. One of the company's three hard drive manufacturing facilities in Thailand will be closed, while one of the two media substrate manufacturing facilities in Malaysia will be closed or sold.

[winston]

Western Digital Corp (NASDAQ: WDC)

Western Digital Corporation, through its subsidiaries, develops, manufactures, and sells storage products and solutions that enable people to create, manage, experience, and preserve digital content.

It provides hard drives and solid-state hybrid drives for desktop and mobile personal computers (PCs); and hard drives and solid-state drives for performance enterprise and capacity enterprise markets.

The company also offers drives used in consumer electronic solutions, such as digital video recorders, gaming consoles, set top boxes, camcorders, and entertainment and navigation systems in automobiles.

The company sells its products to computer manufacturers, resellers, and retailers worldwide. It serves storage subsystem suppliers, Internet and social media infrastructure players, and PC and Mac providers.

http://todaysbigstock.com/2013/09/23/we ... asdaq-wdc/

[winston]

not vested

Latest Chart:-

http://todaysbigstock.com/2014/03/28/we ... daq-wdc-2/

[winston]

not vested

WDC starts to pull back

Western Digital Corporation, together with its subsidiaries, engages in the development, manufacture, sale, and provision of data storage solutions that enable consumers, businesses, governments, and other organizations to create, manage, experience, and preserve digital content worldwide.

The company’s product portfolio includes hard disk drives (HDDs), solid-state drives (SSDs), direct attached storage solutions, personal cloud network attached storage solutions, and public and private cloud data center storage solutions.

Source: Wealth Blueprint Letter

http://wealthblueprintletter.com/wdc-st ... 8ae87f068d

[behappyalways]

Western Digital shares fall 9% after earnings miss
https://www.marketwatch.com/story/weste ... ck_seemore

[behappyalways]

Memory-Holed? Western Digital Dumps $3 Billion Sandisk Stock Stake
https://www.zerohedge.com/technology/me ... tock-stake