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 (295)	2/15/1998 11:02:00 PM
From: kaja	Read Replies (2) of 849

I agree with you. The stock is undervalued relative to the potential that exists. However, the company has disappointed investors several times in the past and they are not willing to give it a proper valuation until they see the proof. The slower than expected growth in DVD has not helped. I expect to see the DVD industry and SIGM to show much better results in the second half. Also, I believe the company did a private placement last year...a convertible (convertible at a discount to market) which is in all likelihood placing pressure on the stock as the private placement investors are converting/selling. With no Wall Street coverage or sponsorship I expect the stock to continue basing at current levels until the private placement guys have fully converted. On the positive side, TCW (a large money management firm in LA) has recently increased their holdings to 12%. I hope the above helps.

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