1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (1302) 

FPA Capital Fund on Western Digital

May 28, 2012 | About:

Western Digital has been in the portfolio since 2007 when we initially purchased the stock in the mid teens. We aggressively added to the position during the financial crisis when the stock traded as low as $10. WDC, which closed at $41.39, along with Seagate Technology, dominates the Hard Disk Drive (HDD) business. WDC has roughly 40% market share of an approximate 700 million unit world-wide market. During the first quarter, WDC closed its deal to purchase Hitachi’s HDD business for $4.8 billion. We believe this deal will add substantial earnings and free cash flow to the company over the next couple of years. Consensus earnings estimates for the combined company recently were increased to over $8 for WDC’s fiscal (June) year end 2013.

Rating: 2.3/5 (6 votes)


Please leave your comment:

GuruFocus Mobile App

User Generated Screeners

OGCAMGDelisting risk
pbarker46PB Stocks
pbarker46PS Stocks
JefulfordAll World Defensive Small Cap
JefulfordAll World Defensive Small Cap
bandymattCundill RE
frankkMicro caps bis 5$
JeanCNoelZython-Down by 20%
rod1z....Dec 02 Stocks Upward
rod1z....Dec 02 SHORT
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)