Western Digital Corp. (WDC) - New Short Squeeze and Breakout

Yesterday WDC shares scored a new FusionIQ short squeeze as well as a break out.  The stock traded up on over 2.6 times its 21-day average volume as its near 11.00 percent short to float percentage caused a price squeeze.   The breakout comes on the heels of Western Digital presenting at the Robert W. Baird Growth Conference.  The short term point and figure target for WDC is $ 40.00, however we are more aligned with the notion that today‚Äôs significant price breakout more closely aligns with some of the higher fundamentally derived targets on the street such as $ 46.00 at Thomas Weisel Partners and $ 44.00 at Needham and Co.

 

Highlights from the conference include WDC management citing healthy overall trends in the HDD industry driven by competition and industry consolidation.   Additionally, WDC management outlined the success of the KOGM acquisition, which has transformed WDC into a fully integrated manufacturer.

 

Giving the extended price short-term pullbacks would offer better entry points.


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