WDC

Western Digital Corp

TMT


Presented:10/29/2015
Price:$66.82
Cap:$15.64B
Current Price:$66.95
Cap:$23.14B

Presented

Date10/29/2015
Price$66.82
Market Cap$15.64B
Ent Value$15.70B
P/E Ratio11.89x
Book Value$40.08
Div Yield0%
Shares O/S234.00M
Ave Daily Vol3,413,588
Short Int1.59%

Current

Price$66.95
Market Cap$23.14B
Western Digital Corp. engages in the development, manufacture, and provision of data storage solutions. Its product portfolio includes hard disk drives and solid-state drives (SSD) marketed under the HGST, WD, and G-Technology brands. It also offers mobile drives for the notebook, PC, and gaming markets, serial attached small computer system interface drives, peripheral component interconnect express SSDs, home video recorders, home network storage devices, and portable, desktop, and personal cloud storage. The company was founded in 1970 and is headquartered in Irvine, CA.

Publicly traded companies mentioned herein: Western Digital (WDC), Seagate (STX) and Intel (INTC).

Highlights

The presenter believes the short thesis on hard disk drives remains highly compelling. Although he sees both Western Digital and Seagate (STX) as highly challenged going forward, he believes that WDC offers the superior short opportunity of the two. Optimally, he believes investors should wait until the closing of WDC’s announced acquisition of SanDisk draws closer to structure a trade, as the deal will transition WDC from a company with a cash rich balance sheet to one carrying 2-2.5 times leverage. He believes that the deal may be unfortunately timed from the perspective of WDC, as the company is in the process of levering up at the same time that Intel (INTC) has announced that it is increasing its investment in NAND, the pricing of which the presenter believes could potentially collapse next year. Meanwhile, the deterioration of hard disk drives both in PCs and the enterprise continues to become increasingly more apparent. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.