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 (417)	6/19/1998 5:45:00 PM
From: Grantcw	Read Replies (3) of 849

My little analysis from previous post: These numbers sure startled me, so please do your own DD on this one before purchasing this stock. I have little expertise in financial analysis and would hate for someone to follow my limited analysis for financial loss. I also wouldn't want anyone to place any blame on John's estimates. Although I respect his opinion very much, it's hard for anyone to project product sales a year in advance. That being said, These numbers look fantastic, IMO. Let's say that we don't garner any more design wins right now. We currently have an estimated 10-20% market share, although I hope we can steal more from CUBE in the next few months! That translates into an estimated 1 million DVD-Roms with our boards and chips. Let's be conservative and say that SIGM sells its chips for $15 per unit and its boards for $65. That puts our sales at $80 per unit X 1 million units = 80 million dollars in sales from DVD-Rom products. Am I crazy? Don't we currently only have $40 million annual sales (generally 10 million a quarter)? Does our DVD-Rom product line have the ability to double sales by itself? When you start to consider the prospect of the Netstream 2 product, our current $10 million/quarter revenue run rate, and the ramping up of DVD-Rom next year, things start looking VERY GOOD to me! Any comments? Grant P.S. I might start getting into a full financial forecast of earnings if anyone thinks that would be interesting. I have a lot of time on my hands.

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