Sigma Designs, Inc fka SIGM

[MRVLReader]

Hey guys,

I think it's time to start nibbling here. SIGM I think offers a most amazing opportunity today. I'm not using the official $10k account for this, but will say for your personal accounts, SIGM at now $20.40, down today after earnings almost $5 is a gift. Why? Well, just read this...


http://seekingalpha.com/article/68401-sigma-earnings-analysis-shorts-should-soon-have-to-cover


Make your own judgement, but this stock trading today at a PE of under 9 and a growth rate near 40% year over year and a tiny 30 mill share float has all the things you'd expect in a monster money maker when the market turns. As I said, much of this carnage in the market is mostly due to 'deleverage' where many large funds were too long the market and now are being forced to just liquidate everything regardless of price.

That means you get to pick and choose from their woes. SIGM could still fall further as that tiny float means any large forced seller could have a dramatic impact on the price with no one out there currently willing to buy it. Don't pile in if you think you want it. But you rarely find tech stocks with growth rates like that and free cash flow like it has and as profitable as it is trading under PEs of even 20.

S2 March 13,2008 7:40 AM