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. …
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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
