Could some members of this board help me understand if this book value is accurate? I am looking at HTCH, and it doesn't seem to make sense that the stock is around $3 with a book value of over $9. Is this an incredible value or what am I missing? Thank you, jf
..."Jayson Noland, an analyst who follows Western Digital for Robert W. Baird in Milwaukee, said Hutchinson could prosper if other disk drive makers sign up for more of its parts. But Hutchinson's gains could be temporary if it continues to rely heavily on Western Digital, which is expected to lose market share to Toshiba. Earlier this year, Western Digital accounted for 58 percent of Hutchinson's revenue.
The problem with that strategy is, for those who have NO exposure, the upside "risk" is so much greater than the downside, that one could end up being pennywise and pound foolish, waiting for a retrace to, say, $2.70 or $2.80, and it doesn't get there, and we're at, say $4-6 in a few months.
I personally consider the move above $3 to be very bullish, even if it is hovering just above it. (I would have expected significant short term resistance at $2.95-3.00.)