wdc is the largest reit on the asx - so a lot of offshore funds hold it as a proxy for aussie real estate performance (which is why having more offshore earnings than aussie was a big complaint from funds for many years).
the reason wdc has dropped is because offshore funds had bought a lot of wdc from 10.30 to 10.80 when the demerger was announced - only to sell out a week or two later once they all got spooked that US will taper and the aussie dollar fall. (decision due tomorrow morning)
either way now is time to buy wdc. the fund calculus clearly showed they liked the demerger deal. but no point making 15% on the stock if they fear losing 10% on a falling currency.
their pain is our gain.
WDC Price at posting:
$9.85 Sentiment: Buy Disclosure: Held
