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: John Rieman who wrote (448)	7/2/1998 1:10:00 PM
From: Scott Moore	Read Replies (1) of 849

What I have observed lately is really odd about SIGM's DVD Hollywood boards (just bought a new one for $66 last week). Even though the prices have a wide range and few dealers at pricewatch.com, they are consistently selling for less than retail at eBay and OnSale. Now I always consider OnSale as an avenue for a manufacture to sell-off discontinued or overstocked inventory items. I tend to believe it is the second option. It seems like they are selling better (commanding a better price) packaged with a Toshiba or Panasonic DVD drive at those sites. So, if there is an oversupply, why not have the retailers drop their package prices, instead of doing all this dumping at OnSale.com? Is it possible there are better board choices out there than SIGM for the second and possibly next generation of DVD? I'm starting to get that impression. If so, you can expect prices to continue to deteriorate in these secondary markets and margins for SIGM will suck, IMO, in just one quarter from now. As for the Netstream board, the price is just too high. I ask our network guys at work about them and they just scoffed saying price was just too high when you compare buying 3COM ethernet boards in bulk all day at $25 (I know this is apples and oranges). SIGM may have its first profitable quarter this time, but it might be the last for awhile.

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