Western Digital Still A Value Stock (WDC)

Western Digital Corporation (NYSE: WDC) is being called a value stock even after its recent share price recovery.  Zacks Investment Research named it the Value stock of the day and has its as a #! (Strong Buy) rating as well.  The thesis is that the drive maker is bouncing back after the Thai flooding and that it trades at only 7-times forward earnings.  The net result was that drive shipments were basically cut in half and the time table for production to be back to normal is by the quarter ending September of 2012.  Zacks further noted that it brought in another $378 million in cash from operations in the second quarter and it also had $3.9 billion in cash and cash equivalents as of the end of the quarter. FULL NOTE

All we can say about the Zacks call is that this is after shares recovered from about $26 to $39 in the aftermath and recovery.  We called it uncanny value as well, but that was down in the $20’s.

JON C. OGG

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