Fears of a slowdown and the uncertainties in Europe pressured our technology stocks. Western Digital was in addition hurt by concerns of excess supply of hard drives due to a recovery from the floods in Thailand. We believe these concerns are short sighted and that the earning power of Western Digital (WDC) has been greatly enhanced by its merger with Hitachi Global Storage. This combination should drive sizable synergies and the consolidated industry is likely to exhibit better price discipline going forward. Western Digital is selling at below 7x earnings and 3.5x EBITDA. This is before the expected synergies from its merger with Hitachi, which we believe will be substantial.