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
Holly LaFon
Holly LaFon
Articles (5968) 

FPA Capital Comments on Western Digital

July 25, 2012 | About:

From FPA Capital's second-quarter commentary:

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.


Rating: 2.8/5 (4 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


ericskomarRule#1 Plus
DANGORDONEPS GROWTH 7-25-16
Praveen ChawlaROA>Div
DBrizanquality25Jul2016
dwin1000Test
greeycapPiotroski Std. 1
luckyno7REITS
vincentkflatprice2
vincentkflatprice
DANGORDONHIGH ROC AND EARN YIELD 7-24-1

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
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)
FEEDBACK