Western Digital Bullish but don't chase it yet. Having already heard from fellow Memory Chip maker Micron estimates and sediment has improved regarding what Western Digital will report July 29th. On the day Micron reported WDC jumped 7% and has returned 45% in the last month. Upgrades prior to earnings are often seen as bullish and today's commentary from Factset analyst Karl Ackerman showed a distinct change in trend.
We have entered a long entry on the chart, but that is dependant on the indicators not been overbought and volume been substantial
BULLISH ANALYSTS COMMENTS MONDAY JULY 8TH
"The directional trend higher on better than feared results from MU received two additional catalysts: 1) a wider than expected NAND wafer impact at WDC and Toshiba's fab operations in Yokkaichi, Japan; and 2) the ability for US-based suppliers to sell to Huawei so long as products were deemed to not affect National Security," wrote Cowen's Karl Ackerman.
"These dynamics suggest WDC should remain a going concern and may no longer lose money in its NAND business through C2021, although the near-term cash flow impact of nearly $600MM is significant," Ackerman wrote. Western Digital is expected to lose $3.02 a share for its fiscal year 2019, according to FactSet.
COMPANY PROFILE
Western Digital Corp. engages in the manufacture, market, and sale of data storage devices and solutions. Its product portfolio includes hard disk drives, solid-state drives marketed under the HGST, WD and G-Technology brands. The company offers mobile drives for the notebook, PC, gaming markets, serial attached small computer system interface drives, peripheral component interconnect express SSDs, home video recorders, home network storage devices, portable, desktop and personal cloud storage. The company was founded by Alvin B. Phillips in 1970 and is headquartered in San Jose, CA.
