Looks like we survived the scare surrounding the lifting of the...

Looks like we survived the scare surrounding the lifting of the short selling ban. Prices were pushed down to $9.75 yesterday around open but moved steadily higher and we are now back above the $10 mark. In my view this provided investors who had missed previous opportunities to buy the stock below $10 a chance to make ammends.

With the company announcing that the full year dividend is likely to be around $0.97-$1.00, this should provide support for the share price in the medium term, which currently offers a dividend yield of almost 10%.

If we get a positive lead from the US tonight I think we could see the price resuming its upward trend following the inevitable profit taking that occured over the last few days after the strong bounce from $9.50.

It should also be mentioned that Director John McFarlane recently purchased 50,000 shares at $9.75, which supports the argument that WDC is good value at these levels.

My opinions only

Dreamcatcher