SIGM trading near liquidation value (Strong Buy)

M

MrDODGE

Rumor (key word) by an analyst is they will lose 23% of their potential earnings stream from Motorola.

Should this equate to a 23% drop in the stock price? NO!!!

Lets do some quick and dirty balance sheet analysis.

Total assets: 379,466,000
Total liabilities: 33,874,000

Shares outstanding: 26,540,000

(379,466,000 - 33,874,000) / 26,540,000 = $13.02

Now, this is a growing company with a great earnings stream with IPTV and Bluray. Today the price is near $16.50 per share. There is no way this can go below the $13.02 liquidation value so potential upside is huge. As of right now their is no chance of this company going bankrupt. Their balance sheet looks great.

*I am long as of this morning*
 
They just announced a partnership with Microsoft yesterday

Sigma Designs (Nasdaq:SIGM - News), a leader in digital media processing system-on-a-chips (SoCs) for consumer electronics, and Microsoft Corp., today announced a collaboration to enable the Microsoft Mediaroom Internet Protocol Television (IPTV) and multimedia platform to operate on next-generation set-top boxes using the new Sigma SMP8654 SoC. The solution will provide a high-performance, cost-effective design that will give service providers the ability to offer innovative connected TV services, such as PC to TV photo and music sharing and also DVR Anywhere, which gives consumers the flexibility to watch their recorded programs on any TV in their home.

http://www.microsoft.com/tv/default.mspx
 
For fiscal 2009, Baird cut its estimates to earnings of $2.40 from $2.50 a
share on revenue of $318.3 million from $328 million. The firm lowered its
fiscal 2010 forecast to earnings of $2.70 from $2.80 a share on revenue of
$388.6 million form $389.9 million.

Analysts polled by Thomson Financial, on average, estimate 2009 earnings of
$2.24 a share on revenue of $307.5 million, and 2010 earnings of $2.81 a share
on revenue of $394.2 million.
 
I would for INTC earning before jumping on it.

if INTC post bad numbers this baby goes another 1 or 2 buck lower and if intc guides higher it will go up 50 to 75 cents..
 
Found this novel post on the yhoo boards:

SIGM closed at $16.60 Feb 1. 2006. Right now the price is below that at under $16.50

For their Fiscal Year ended Jan.28, 2006 (corresponding to the 16.60 price above) they had:
$33,320,000 Sales
$1,884 Net Income

For their Last Fiscal Year (ended Feb.2, 2008) they had:
$221,206,000 Sales
$70,209 Net Income

And the price is the same. Crazy!
 
Quote from scriabinop23:

Found this novel post on the yhoo boards:

SIGM closed at $16.60 Feb 1. 2006. Right now the price is below that at under $16.50

For their Fiscal Year ended Jan.28, 2006 (corresponding to the 16.60 price above) they had:
$33,320,000 Sales
$1,884 Net Income

For their Last Fiscal Year (ended Feb.2, 2008) they had:
$221,206,000 Sales
$70,209 Net Income

And the price is the same. Crazy!
More...


Are the number of shares outstanding the same?
 
Quote from sabunabu:

Are the number of shares outstanding the same?
More...


25m shares right now (they just bought back 3.8m verified, probably 5m by now). So we're talking about a 12-13% net increase in the share count between Jan 28 -> Present.


According to the annual report:

Balance, January 28, 2006 21,945,874

Balance, February 2, 2008 30,031,060 (subtract 3.8-5 million bought back)

Current assets-liabilities (taking into account 5m bought back at 20) are 250m. Only 25m of that is inventory.

April 29, 2006 assets-liabilities were at 43M.


I don't care if we're talking about peaked out growth. Since PE is way below 15, we're not priced for growth. Every analyst is 2.20-2.60 going forward. This stock is priced for 1.00 for FY09.
 
Well, I got into this stock 250 shares @ $16.06 average, let's see where it goes over the next few days.

Huge selling pressures on it right now though. Volume is incredible. I could get slaughtered on this one.
 
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