Some quick thoughts I’ve been having the past few days, I’ve been looking at Western Digital Corp (WDC) and doing some catch up.
[dalio]
Q2 hedge fund letters, conference, scoops etc
Unlike many people, I prefer to use a desktop computer. Guess it still carried over from my nerdy teenage years where I would build and upgrade my own computer.
Over the past week, I could hear one of my hard drives dying. The HDD is about 5-6 years old and the click click click of death was getting louder.
Don’t know what is more jaw dropping. The price drops in HDD and SSD or crypto.
Anyways, I opted to go with Western Digital’s “black” performance version. 1TB for $80.
Samsung’s 1TB SSD is $180.
Since it was my secondary drive that was failing, I decided to save the $100 over the SSD.
Once I clicked on buy, I did what Peter Lynch says to do.
Look up the stock.
It’s a B grade rating on the OSV ranking. Nice.
A for Quality, and A for Value.
I classify these types off stocks (Q+V) as sleeper stocks. Stocks that the market hasn’t woken up to.
Western Digital at Old School Value
When I last looked at Western Digital a couple of years back, it was flying high after recovering from the fears of HDD death. I may be speaking too soon, but it looks like it’s going through the same thing.
The main thing that grabs my interest is that there isn’t a new bear case other than fears of pricing and the same concern of HDD death.
And my question to this is whether WDC has done nothing to prepare for this.
The fundamentals are still solid and share price is in line with a negative outlook.
Here’s a look at WDC compared to STX.
I’m not a fan of cyclical stocks, but any lower and it’s going to get harder to keep my grubby hands away from mashing the WDC buttons.
Let me know what you think of WDC.
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Article by Jae Jun, Old School Value
