Western Digital (WDC)

Seagate, Western Digital's largest competitor, acquired hard drive manufacturer Maxtor in 2006. Although Seagate now has a larger market share, the elimination of a competitor may allow Western Digital to increase sales to customers looking to maintain a diverse supplier base.

Looks pretty cheap. Ex-cash it's at 3.6x Earnings. Low debt and high coverage.

Western Digital's offerings cover 90% of the disk-drive market. As long as the disk-drive market remains healthy, the company has a strong and diversified set of products and clients.

Strong growth in the mobile computing market creates strong demand for Western Digital's mobile hard drive products. One of Western Digital's newest offerings, the 160 GB Scorpio drive incorporates perpendicular recording, and is a strong competitor in the 2.5" form factor market.

Western Digital is likely to enjoy growth as will other drive manufacturers for the next five year period while corporations consolidate their current IT assets by utilizing virtualization and multiple storage Area Networks.

Seagate, Western Digital's largest competitor, acquired hard drive manufacturer Maxtor in 2006. Although Seagate now has a larger market share, the elimination of a competitor may allow Western Digital to increase sales to customers looking to maintain a diverse supplier base.