Western Digital Corp. (WDC)

TheHarm (< 20) Submitted: 2/05/08 12:24 PM : Start Price: $24.19 WDC Score: 57.75

So tech isn't that hot right now... so what make Western Digital a buy? Well... a P/E near 9, and P/S at 1, and a ROE of 40%. Isn't that enough? If not, add the 15% insider holding, y-o-y quarterly revenue growth of 56%, quarterly y-o-y earnings growth of 138%, and an insane amount of earnings surprises. Not to mention, I don't think this stock has any worthy competitors. Also, coming from a computer nerd, I know this company makes a sick hard drive (the raptor) and will only continue to produce the best in computer technology. Not to mention, just listen to this recent statement by WD's vice president (courtesy of yahoo):

"As demand for storage continues to expand, the need for more efficient power solutions becomes paramount to our customers," said Tom McDorman, WD's vice president and general manager of enterprise storage. "WD's innovative GreenPower(TM) technology makes it possible for large scale data centers to increase storage capacity while minimizing the increase in power consumption, and in many cases actually reduce power consumption. Our membership in The Green Grid demonstrates our continued commitment to advancing greater energy efficiency in data centers worldwide."

A green play too? Wow, what a great marketing move. Check and mate. This stock hits 43-45$ by beginning of 2009.

If you're going to move this into a real account, I'd wait till the bears drive down tech stocks well below where they are now, I'd pick this one up at 25-26$ if it ever hits there.

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