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Petróleo Brasileiro S.A. - Petrobras Message Board

  • musketeernumberone musketeernumberone Oct 15, 2010 11:41 AM Flag

    Doc: Good call, disc-drive makers


    STX + 20%
    WDC + 8%!

    I did not participate :-(


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    • Theres a european fuel shortage, will that help or hurt pbr?

    • Monday I am buying positions in STX, WDC and STEC... This is an industry selling as though it had trough earnings rather than peak earnings -- with possible upside on sales volumes.

      STX is THE supplier for enterprise storage. The rumored offer puts a floor on valuation and highlights the opportunity.

      WDC is THE supplier for consumer applications and has far less debt than the perenially flipped STX (flipped by private equity, that is).

      STEC is the up and comer for SSD... speculative at best, but should be a benficiary of the froth in thois sector.

      EMC announced an SSD product for consumers by subsidiary Iomega... this is indication of where memory is going. I bought EMC early last week for a 5 day gain of about 5%... I doubt the ORCL acquisition rumor, but EMC has a huge position in VMW -- THE hottest storage play -- a huge consultative sales force, *blue chip* status in storage... If they combined with Dell they would look like IBM or HP with a focus on storage... not a bad thing. Stocfk is a bit procey, though, so did not jump in with 2 feet. Certainly it is worth a big-toe.

      Also bot a small position in israeli semi- MLNX - they have a very hot product for storage; stock got slammed last summer but have recovered somewhat... I am hoping the bounce continues.

    • No, Musk, I didn't. Seagate got a private equity offer. WDC is going up just in sympathy.

      For the most part, I am not buying stocks as investments until the law is changed, but the bigger names are probably okay to own. If the big corporations get too out of hand, lawyers will go after companies and their boards via class action cases. Still, I am disgusted that U.S. shareholders essentially have no rights and the SEC is totally toothless.

      This is Obama's pick for SEC chairman and how much she got paid by FINRA,

      Most investors don't know or care who/what FINRA is, but I know and do care.

      But back to stocks, there are some really compelling bargains. MSFT is so cheap it makes me sick as is INTC. Word is that Micosoft's windows 7 phone is really cool. MSFT is waiting for Congress to get its head out of its butt on tax law so it can decide on whether to do a dividend or share buyback IMO. They just issued debt and had to pay less than 1% interest on their bonds. That is crazy. MSFT can buy anything it wants now.

      I like WDC more than STX, and the amazing thing is that it is still cheap. If I could borrow at 1%, I would be buying both WDC and STX. With PEs of 5 or 6, you are getting the equivalent of 20% or so yield. If STX got an offer, I can't see why wouldn't be coming for WDC, which is a better company and has a better balance sheet IMO.

      There has been a lot of concern about the death of the hard drive because of flash drives. I think for now that is nonsense. Flash is between 10 and 100X more per GB than hard drives. These are Peter Lynch type companies. You buy companies in flailing industries that still make a boat load of cash and are not subject to new competition. WDC does not have to worry about any new competitors. It may pull back but it is still a screaming buy.

5.12-0.45(-8.08%)Nov 25 4:02 PMEST