Amvona

On July 25th, 2012 Western Digital Corp. (WDC) announced their FY2012 results - and beat consensus EPS estimates of $2.47.  In after hours trading on July 24th as well as today, the shares moved up slightly, so it seemed like a good time to take a look back at some of the Amvona analysis of the company.

 

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Published in Finding Alpha

on the sidelines 2According to a research report published last Friday, Bank of America has downgraded Western Digital from Buy to Neutral, and lowered their target from $54 to $46. In the report, Bank of America said:

 

"WD reported significantly better than expected F3Q12 EPS at $2.52 vs. our/Street $1.60/1.55, driven by revenue and margin. WD guidance was disappointing (EPS of $2.35-2.55 vs. our/Street prior $2.67/2.30) and commentary pointed to softer demand than expected going forward, at current/elevated ASPs levels, and some pricing concessions (certain HGST customers, pre-acquisition). It appears the HDD industry can't have it both ways for much longer – pricing/margins at high levels, and expected strong demand, with assumed channel inventory refill. We step to the sidelines for now, despite attractive valuation."

Published in Finding Alpha
price_targetWe were waiting for at least a 7% price jump when we published our article Hard Drives, Floods, Monasteries and Investment Returns on Dec. 2nd , 2011 – good thing we weren’t holding our breath.  We thought the article looked pretty smart, not only because the WDC investment had already returned 30.2% to investors by the time we were able to publish, but also because we had this really crazy $67 dollar price target on the stock (way higher than any other analyst at the time) – we thought people would listen.
Published in Finding Alpha

going_downSKX fell almost 8 percent on Tuesday after an analyst said it may have overestimated demand for its toning shoes. He downgraded the stock to "Sell."  From Bloomberg:


“Sterne Agee analyst Sam Poser said Skechers has more toning shoes inventory than it can sell as sales of the specialty shoes slow. Poser said he has seen the shoes at discounters Ross Stores Inc., TJX stores, which include T.J. Maxx and Marshall's, and Costco, selling for $39 to $52.99. That puts pressure on Skechers partners like Famous Footwear, where the shoes sell for $59.99, Poser said.”

Published in Finding Alpha

“640K ought to be enough for anybody…”            

Recently the hard drive crashed on one of our home computers, suddenly and without cause.  When we took it apart to replace the hard drive, we discovered it was a Seagate SATA 500GB / 7200 RPM.  It was a good opportunity to upgrade the operating system, and install a larger drive… perhaps 1TB.  About a year ago when the machine was purchased, 500GB still seemed large, now it seemed small and inadequate, particularly for storing our large and growing collection of home videos.  Cost to replace (without price shopping): $49.00.

Published in Finding Alpha

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