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Western Digital Corporation Message Board

  • spinbutton1000 spinbutton1000 Jan 31, 2013 2:15 AM Flag

    Wall Street Clerks Wrong Again

    Wall Street clerks have been wrong about WDC for years. Amazing that they supported STX recently just because of WDC's blow-out earnings report but tank WDC because of STX's lousy report. What's wrong with that picture? WDC has been eating STX's lunch for quite awhile now. The clerks just can't admit that they have been wrong about WDC (and STX), all this time and it's nothing more than sour grapes, plain and simple. Here's a stock with a forward P/E of only 6 but the clerks come up with every excuse not to buy the stock. It's like the broken clock being right twice a day, -- some of these clerks continue to bad mouth WDC hoping for the day that the stock sells off, so they can say I told ya so. Meanwhile, the entire time they missed the run from when WDC only was $ 10. WDC should be at least $ 60 on a valuation basis. Figures never lie but liars and bittermen clerks can figure. In the end, valuation does not lie. Love to see a short squeeze on this stock as there is no way WDC should be trading with STX in tandem. Short WDC at your own peril.

    Just to show I'm not blindly loyal to WDC. They were at the recent CES in Las Vegas. WDC management needs to advance their thinking to 2013. They want WDC to be known as WD in the marketplace, particularly in the consumer area. This is fine but how are they going to let the world know about this? Where is the investment in advertising, so that people won't think that WD is just a subsidiary of WD-40? Coke, their current SuperBowl ad notwithstanding, is committed to advertising and they are The #1 brand label out there.
    WDC is nowhere near #1 but they must start somewhere. This is another example of not managing The Street, not managing people's expectations, and WDC has been struggling at this big time. It's a whole different world now, so WDC management must adjust to this and put The 70's and The 80's far back in the rear view mirror, and take advantage of their current product position, their good financial position, and stop the insanity if they truly are committed to maximizing shareholder return. Yeah, growing pains hurt but don't stand in the way of progress and growth because you think you have to do things the exact same way you've always done them. If they can fix this and launch a decisive, effective campaign, then the short squeeze could happen a lot sooner than later. However, time's a wastin', so it's time for them to step it up!!

    Sentiment: Strong Buy

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    • "Here's a stock with a forward P/E of only 6 "

      WDC doles out to the OWNERS of WDC a 2% dividend yield per stock price and some idiot named spinbutt blames Wall Street!!! LMAO@U

      "P/E of only 6 " = 17% earnings on OWNERS current capital valuation.

      WDC earns 17% and pays you 2%!!!! And YOU blame Wall Street!! ROTFLMAO@U

      ANY sentient being might wonder where the other 88% of earnings go given that is sure as fut ain't doin nothin to boost the stock value.
      And if WDC was paying you 17% you wouldn't give a flying fut what your Wall Street thinks.

      P.S., moron, 1/3 of WDC stock valuation is represented by cash on the balance sheet. AND WDC still ain't paying you squat. #$%$!!!! ANd you're blaming Wall Street!!!

    • I think you have nailed it. did you ever notice the pundits always slant their releases announcing that WDC either is the cats meow or a dog 30 seconds AFTER WDC announces earnings. Funny they are apparently not reading the same stats I am. I suspect some of them are insider trading, either directly( stupid if they do) or through straw buyers or sellers. I have traded WDC since it was in the 3 buck catagory and have made a few bucks along the way I hope they continue on the path they have taken as I am better off for it

      Sentiment: Strong Buy

    • "Coke" compare isn't right because the Coke -vs- others purchase decision is made by Joe Public - repeatedly maybe several x/day. Who are the hard-drive deciders - especially in volume? What motivates them (name? performance? cost? power? security? etc), and are they really going to care if we burn $2,000,000 air-time + production costs being judged by Joe Public -vs- the costliest ads for products he really does know with frequency & who could care less about the name of his hard drive vendor. 'specially since there's only 2 now. Right?

      Sentiment: Buy

      • 1 Reply to jflins
      • It seems u r totally missing my point. The Coke reference only is an example of a company which is well-known but is still advertising regardless who is purchasing what. WD doesn't do much in the way of advertising, especially as it relates to their consumer products upon which they are trying to expand, not hard drives. Your points about hard drives, motivations, vendors, etc., are all kinda Duhhh. It does seem like u may be working for WD since that's the kinda points their management would make. : )

        Sentiment: Strong Buy

    • ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming ssd's are coming

      that is the message from the business news "experts" that drown out any amount of advertisin money

      wd could go like the big pharma and spend more on advertisin than R&D and the results would do ????

    • I'm not going to argue with the fact that the WS clerks got it wrong.

      But increasing the advertising budget probably has minimal effect. Straight consumer/retail sales account for 15% of sales, OEMs and distributors the rest. Retail has never been higher than about 22%. That other 85% aren't going to be influenced by slick advertising.

      • 1 Reply to go_gatrz
      • I'm not talking about merely increasing the advertising budget, (something about which their bean counters seem to be clueless anyway), or using gimmicky ads. WD needs an entire paradigm shift in terms of dealing with "negative" clerk speak, of getting who they truly are out there, of getting a vision away from the past, (Phrases like your "Retail has never . . . " no longer s/b part of their mindset), and stop letting the market sell them short, not in terms of stock trading but rather in terms of ridding the perception that they only deal with hard drive PC storage. WD is involved with da cloud and is trying to increase their participation in the consumer area. I actually like what I see in terms of product offerings, (yeah, I get it, their specialties aren't the sexiest things out there but Hey!! They nevertheless are things that are needed and necessary.), so my hope is that WD will at least sustain and eventually grow the momentum they've been building.

        You cite those percentage statistics which are fine for historical perspective but WD needs to move much farther beyond that, stop standing pat in their mentality, and take more advantage of their strategic position. With the current market P/E multiple around 14, WD needs to do the things that will get their current arbitrarily assigned P/E of only 6 expanded to something higher. Quarter after quarter, -- not that I care about each quarter like the clerks do to justify their useful existence--, WD's reports haven't been all that bad, yet they haven't been rewarded as much because of the ridiculously low P/E multiple, which at times has translated into a mere 2 P/E. Really?? How stupid that looked!! Split the difference, and say the P/E gets halfway to the market average of 14 from 6, and you see what a diference that could make in the share price, especially if WD can keep beating the clerks' pooh-poohed earnings estimates. There's much potential here but is WD ready, willing, and able to take things to the next level? That makes the difference between a $ 30-something priced stock and a $ 60 - $ 70./ priced stock going forward.

        Sentiment: Strong Buy

 
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