I just can't believe the number of pathetic posts on here railing against the most recent announcement by WGO management, calling them petulant children etc. Get your hands off it.
The two JV parties are obviously in disagreement, don't pretend like STX is behaving appropriately here. Up until this point, both were on par and carrying out what are normal dynamics for JV partners in disagreement. STX's latest actions are embarrassing.
What has actually occurred:
STX management made an announcement thatmay have been too positive.
As responsible management WGO released an announcement that simply suggested that STX took a best case scenario, there's potential downside. Look at the resources if you want to get an idea about which company overstates and which understates.
STX has gone behind everyone's back and done a very particular, select test to support their own announcement/interpretation.
STX's management released its announcement, and provided it to WGO late (after market open). STX's announcement directly attacks WGO management. If you see this behaviour and think that STX is in the right, and WGO is in the wrong, you're having a laugh.
WGO management have no choice but to respond, and respond in the most appropriate fashion possible. Essentially STX management have done a special test to support its own hypothesis, we really can't tell and can't do any tests of our own, it will be clear in due course.
The most appropriate action, when the JV disagreed would have been to wait until WE-5 results, and base an announcement from that. Further, the announcement would not directly attach the JV partner, it would simply state that STX continued to prefer its interpretation. That's appropriate and effective management.
I'm frustrated by the share price, and the fact that the there is disagreement in the JV. That said, WGO still remains the better buy - those selling WGO to buy STX are morons. They essentially own the same asset, but WGO is half the market cap.
If you want exposure to STX's additional plays, then buy STX, but do not buy STX because of WE...because they simply doesn't make sense.
WGO Price at posting:
25.3¢ Sentiment: Buy Disclosure: Held
