SIGMA Pullback-

S

stonedinvestor

I'm not jumping yet but it's worth highlighting the fact that SIGM has pulled in hard and into support. Would seriously begin to look at SIGM down near here in the 21.50 -22.25 zone for entry for swing trade over the next several days/weeks. It is off nearly $7 from its early December all time high or nearly 25% & appears to be a very good value down here near support. I may re enter it shortly in the portfolio.... ~ stoney
 
Ok situation becomming a little clearer.

(SIGM) Sigma Designs: BWS Financial notes that SIGM saw a sharp decline on Monday on heavy volume. The firm says it seems as though there were unsubstantiated rumors that the co was once again switching auditors and that there was more to the stock option situation than what is known. They believe that the rumors have little basis for such a steep drop in the stock price given that SIGM has been forward with the ongoing option situation. The firm has previously noted that it seems as though the co has won new carriers for set-top boxes with chipsets from SIGM. Their fiscal 2008 numbers continue to seem conservative as they have cited before, and would be raised with the official announcement of the design wins they have discussed.

Those option scandles will they ever end? Hope I can get $2 out of this.... ~ stoney
 
Apparently I am having a conversation with myself here on SIGM- but I find myself interesting so here is some more....

IGMA DESIGNS (SIGM) : Valuation: So, we have a stock that is back to $20-22 and forward sales and EPS numbers that are poised to accelerate and beat all expectations. For essentially calendar 2007, my sales and EPS numbers remain at $154 million and $1.30, respectively. That's a price/EPS (P/E) ratio of about 15 or about 50% of what any decently positioned and growing technology stock typically sells for. With secular EPS growth (CAGR) over the next few years expected to be anywhere from 50% to 100%, that's a PEG (P/E over CAGR) ratio of one-third or less versus more typical levels of 1.0+ for many other tech firms. Consequently, if my general thesis and numbers on SIGM are anywhere near the mark, the stock is an outright steal at its current price. In my opinion, it's worth at least $30 today and probably twice that by next Christmas. Consequently and also in my opinion, the new shorts arriving today on this stock are setting themselves up for a much bloodier nose than they got last time. When? Soon, I'm betting. Before this calendar quarter ends: 1) I expect that SIGM will have put its option problem behind it and will hopefully be on its way to finally hiring a CFO. Either of these events could prompt new institutional interest and buying; 2) 4Q numbers and commentary will be reported and they should be even more impressive than what was reported and said in the 3Q; 3) SIGM will present at two sell-side conferences in February; 4) One or more significant new telco IPTV projects could be announced as well as positive deployment announcements from known customers. 5) One or more sell-side analysts could upgrade the stock or initiate coverage on it. ~
 
I don't like the business - lot of competition. What's their competitive edge?

Can be next Sigmatel (SGTL 40->4).

And management is questionable.
 
Tank- it's Jade I'm finally here in America!

I'm staying at this apt of the stonedinvestor and he has been very nice to me so far. Keeps buying me.... how you say -hand and fist me? Hand over fist, whatever.
I think I can speak for you know who when I say he's taking a big risk with SIGM. He knows that. Many of your concerns are his concerns. He bought a LT position today. God help him. Earlier in this thread I think he laid out a good bull case. The technical picture seems to indicate a stock that wants to go up but you never know....

yours JADE
 
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