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Sigma Design (SIGM)

May 28th, 2008 · No Comments

We haven’t written about it for some time. We advised you to buy at $20, it had a nice run up, but now it’s running down again and we’re approaching that $20 level. Tomorrow, earnings will come out and we will get a lot more clarity. Here is the graph:

We can’t really say it any better than this:

But if the analysts are right, and Sigma Designs hits anywhere near the 26%-plus annualized growth they’re projecting for it, the stock is an absolute screaming buy at today’s price. In short, Sigma Designs is priced for disaster, and any result better than that should reward investors handsomely.

Sometimes, writing about stocks is pretty easy, as someone else has already put it very nicely. It’s like Rich Smith from Mothley Fools can read our minds, so one should read that whole article.

A couple of points

  • gross margins, operating margins, net margins, they’re all growing
  • the company has a share buy-back program almost amounting to 20% of outstanding shares

Bar some disaster (Broadcom really sweeping the market, something like that) we think all the bad news is in the price, unless management is hiding something. We will know tomorrow.

Tags: SIGM