If you believe in fundamental analysis...

B

ByLoSellHi

...you know, like those Graham, Miller or Buffet guys...


Check out Western Digital Corporation (WDC).

Does it get any better?


Disclosure - I never, ever speak positively about any stock that I don't currently own, or am about to take an immediate position in - ever.

I currently own WDC shares in the 4 digit range
 
And then, just to add a little sizzle to the fundamentals (the likes of which I RARELY see);


"Design does make a difference in sales. Western Digital sold almost 40 percent of all external hard drives last year, according to data from Current Analysis, a market research firm, thanks to its My Book device. The glossy bluish-black case resembled a dictionary-size book. Two concentric circles of blue light that glow from the binding side display the amount of storage used."

http://www.nytimes.com/2007/03/08/technology/08drive.html


156986-wdg1c5000n.jpg

482-western-digital-my-book.jpg
 
They've been one of the more dependable names for hard drives in my book over the years...although I do have one of their externals from about two years ago and the design on it is horrible! It's really a miserable design...but their drives are rather stable and I've had much worse luck with Maxtors.
 
Not being critical...but sharing some experience.

fundamental analysis flys out the window during down cycles.

Rememebr the thing that drives price action is money flow. therefore the only thing that can drive the price up is large amounts of institutitonal buying, right?

your company already has huge amounts of insitutional ownership (87%+) meaning the only thing that can drive the price up is what is left of the float...not much.

If now there is a large flight to quality (look at bond volumes lately)...why would fund managers take a risk on a volitile little tech company during an economic down cycle.

It may be fine long term...but understand what is working against you.
 
is this a down cycle? Why can't the market ever just completely shit to bed without everyone conjuring up the bear? It's fear. Fear of liquidity contraction as long as the fear is there the market will remain balanced and we won't tip into over speculation and hedge fund unwinding end of days scenario that apparently all technicians are hoping for. I'm sick of hearing about the neg but here's the point Louise Yamatta I like a lot and her take is the absolute worst thing would be to rally back hard... of course that is about to happen. she's forward thinking though when it happens all these bearish sounding technical newsletters will paint a rosy picture and join the party late-- then the big correction hits... feels like a long summer sell off to me but a big spike now.
 
Those are good points.

If you look at WDCs fundamentals, it is sound a balance sheet as I have witnessed in a long, long time.

It's trading below book value.
 
Quote from ByLoSellHi:

Those are good points.

If you look at WDCs fundamentals, it is sound a balance sheet as I have witnessed in a long, long time.

It's trading below book value.
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True, but if we go into a bear market, you'll be able to get a better price on the same fundamentals by waiting.
 
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