Unisplendour’s deal with Western Digital also is likely to be reviewed by the Committee on Foreign Investment in the United States, an interagency panel led by the Treasury Department, for any national security implications. At 12:45 p.m. Wednesday, the stock was up about 13% after earlier rising to more than 16% above the previous close. The disclosure for this sale can be found here. An excerpt of twenty seven expert stock analysts who have analysed Western Digital Corp shows they expect it to earn $6.88 per share in 2015 for a price-earnings ratio of 10.08. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $19.32.
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The deal is the latest for a Chinese company that has emerged from obscurity in the past year to strike collaborations with Intel Corp., Hewlett-Packard Co. and Microsoft Corp., as USA tech companies scramble for politically connected Chinese partners amid a hard business environment. Western Digital’s board now has nine members. The ex-dividend date is Wednesday, September 30th.
Tsinghua’s Unisplendour Corp. unit will pay $92.50 each for newly issued shares of Western Digital, a sharp premium to the company’s closing price Tuesday of $68.87. During the same quarter past year, the firm posted $1.85 earnings per share. This represents a $2.00 annualized dividend and a yield of 2.93%. Jefferies Group reissued a “buy” rating and set a $116.00 target price on shares of Western Digital Corp in a research report on Monday, June 29th.
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“We are excited to establish a relationship with Western Digital, a leading company in the storage industry with a capable and talented management team and workforce”, Weiguo Zhao, chairman of Tsinghua Unigroup and Unisplendour Corporation said. Hard Disk Drives, provide non volatile data storage. The company had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.35 billion. Solid-State Drives, are semiconductor and non-volatile media. Post opening the session at $69.74, the shares hit an intraday low of $67.87 and an intraday high of $70.05 and the price vacillated in this range throughout the day. The Company offers solutions including: Enterprise Storage Solutions, Client Desktop and Notebook PCs, Branded Product Solutions, Consumer Electronics Solutions. The Company’s products are marketed under the G, WD and HGST -Technology brand names.
