Sigma Designs- Up 50% per Month- Why? Message Board

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Technology Stocks : Sigma Designs- Up 50% per Month- Why?

SIGM 0.280

-0.2%

Aug 17 5:00 PM EST

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To: Grantcw who wrote (318)	3/1/1998 10:35:00 AM
From: kaja	Read Replies (3) of 849

Approximately $2.4 million of the convertible is still outstanding. The balance of $1.6 has been converted/sold. This is were the pressure on the stock has been coming from. Of the $2.4 still o/s the company is currently negotiating with one investor, that holds $2.0 million of the convertible, to buy it back. The company feels that converting at these levels is creating to much dilution. They have found another investor that will give them the $2.0 million to complete the transaction. The new investor will not be able to convert for a period of four months. This will buy the company more time. I guess they expect great things to happen in the next four months! I suspect the pressure on the stock over the last week or so represents the minor holder ($.4 million) converting/selling shares. Based upon the volume over the last couple of days I would think this holder is almost done. The information on the re-financing comes to me through my broker who was on the conference call last week. The transaction is being finalized and they expect to announce shortly. Will post his other comments from the conference call later. I think when the announcement comes this will be positive for the stock. More importantly, this shows me that management is sensitive about shareholder value and is not willing to just sit and see shareholders get diluted and these low prices.

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