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WDC - (Western Digital Corp)

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WDC - (Western Digital Corp)
manufactures computer hard disk drives

there has been some criticism of Western Digital's
recent aquisition of Komag, Incorporated;
with the typical merger criticism
of the aquirer paying too high a price

Komag manufactures the magnetic heads
required to read and write the magnetic hard disk data

my WDC investment decision is based upon my belief that
such aquisition is a good utilization of corporate resources
considering Western Digital's P/E of about 10,
and 900 million dollars of cash.

Western Digital explains (September 5, 2007 Press Release):
http://biz.yahoo.com/prnews/070905/law119.html?.v=59
"It ensures our ongoing access to critical technology and supply,
and improves our cost structure.
Our goal of profitable growth is enhanced by
now having both head and media operations
integrated into our hard drive business."

I am also optimistic of future business based upon belief that
Microsoft's new Vista Operating System release
will result in many existing computer systems
being replaced by new systems
containing upgraded hardware capabilities
required by the new operating system

I also believe that more video content being provided over the internet
will also create demand for more storage capacity
from online multi-media providers

it seems that the world is evolving from
large quantities of people watching the same content
from television broadcasters,
toward a new era of people expecting
more flexible "on-demand" multimedia content