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How to Protect your Wealth by Investing in AI Tech Stocks

Western Digital - WDC Stock Price Analysis Forecast 2023

Companies / Tech Stocks Jan 14, 2023 - 10:47 PM GMT

By: Nadeem_Walayat

Companies

Ai Stocks Portfolio

A quick look at the current state of my portfolio which is now 88.5% invested after arrival of approx 5% of fresh cash and after I sold all of my NBIX holding given that it earlier retreated from a multi year high, and that it tends to trade within a range of $125 to $76. I have update the table to indicate when columns were last updated. I have also replaced the beta column with something more useful called Future Growth (1-10), which is basically how I see the COMPANY doing in terms of future growth potential where 10 is the highest and 1 is the lowest, note this does not mean that the stock prices will match growth potential due to a myriad of factors such as sentiment, valuation and politics, but it gives insight into the underlying prospects for the businesses where the two stocks that score 10 are AMD and TSMC which is why I am heavily invested in both and don't fret about stock price drops in either as recently experienced because the underlying businesses have huge long-term future growth potential. Stocks that score 9 are Nvidia, Facebook, ASML and IBM, which again means I am not too phased by what we recently witnessed with the likes of META and and Nvidia, stock prices rarely reflect the actual state of the underlying business as they oscillate between extreme fear and extreme FOMO as illustrated when one watches the Cartoon Network (CNBC).


Table Big Image - https://www.marketoracle.co.uk/images/2022/Nov/AI-stocks-portfolio-25th.jpg

Western Digital - WDC - $37.3, P/E 6.3, EGF -96%, -43%

Western Digital the storage devices giant was on fire during June for no apparent reason given that EGF at the time was warning to expect earnings contraction, well that surge to above $62 did not last long with the stock crumbing on break below $41 to a deep bear market low of $32, the which prompted me to accumulate all the way down to $32, lifting my exposure to 129% invested. The rally since has proven to be pretty weak resulting in a sharp sell off from $40 so the stock is under performing the market in terms of trend, very weak rally. Technically WDC's bear market remains in tact with heavy resistance in the zone of $51 to $41 with recent price action suggesting it is going to be tough to break above $41.

EGF's of -96% and -43% forecast BAD earnings ahead, a rough 2023. So at best WDC trades within a range of $41 to $33. for some time, only being lifted higher due to general market strength as a rising tide lifts all boats. So I would definitely take a rally towards $50 to trim holdings from my over extended 129% invested so that I have an opportunity to accumulate once more sub $34,. The bottom line is that WDC is probably going to be sleeping for most of 2023 by at best trading in a range of $41 to $33 and at worst could see new lows down to sub $24. On the plus side when this stock gets going it tends to move fast i.e. triple within a year as a function of its small market cap and thus low volume of trading, it's just that I am not expecting such a move this side of 2024.

This article is an excerpt form my recent analysis on the current state of the embryonic stocks bull market Stocks Analysis Bonanza - GOOG, QCOM, ASML, TCHEY, BABA, BIDU, TSLA, WDC, RBLX, MGNI, COIN, BITCOIN CAPITULATION! that was was first made available to patrons who support my work.So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat. Lock it in now as $4 per month as this rises to $5 per month in th new year.

Also access to my extensive analysis that concludes in detailed stock market trend forecast into the end of 2023 Stocks Bear Market Max PAIN - Trend Forecast Analysis to Dec 2023 - Part1

Most recent analysis includes -

So for immediate first access to to all of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

My Main Analysis Schedule:

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Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat. Lock in now as this increases to $5 per month in the new year.

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Your mega-trend investing analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2022 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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