After China's Unisplendor paid a 33% premium to buy a 15% equity stake in Western Digital, UBS analyst John Roy offered three possible reasons for the high premium: Unisplendor may expect MOFCOM to end its hold separate order, which would allow Western Digital to lower annual operating expenses by $400M; Unisplendor may be expecting the company to do well in the growing enterprise SSD market; or Unisplendor may not have had pricing as it main concern as it views the deal as a strategic investment. Roy acknowledged that the risks of a MOFCOM delay have fallen for Western Digital, but he still thinks increased competition from flash are not reflected in its stock price and maintains a Sell rating on the stock.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here