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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: Scott Moore who wrote (450)7/2/1998 3:25:00 PM
From: Grantcw  Read Replies (1) of 849
 
Scott,

Thanks for the real-life info about SIGM's products.

Doesn't every company end up getting their products sold at less than retail so that it looks like a sale? You go to Sears and see some refridgerator from Kenmoor: Retail $800, Sears special price $700! Isn't this the way biz is done?

Whatever the price games being played are, you bought your board at $66. I'm thinking that's a good price from SIGM's standpoint, and yours also. John was guessing $40 a board for the OEMs. That's more than a 50% mark-up from the OEM price. I remember from the conference call that SIGM said they had much more capacity than needed to push out their DVD-Rom products. Maybe they just see the opportunity to get their brand name established in the market by selling their products at a decent, but not amazing, price.

On the other hand, you may be right that other boards will soon be better than SIGM's current board. I'm hoping that SIGM announces a new board for the market in the next 3-6 months. You could be right that SIGM is selling all they can right now in anticipation of the discontinuance of the product line.

It seems like the Nestream product is the first of its kind and only one on the market. Do you believe this to be the case also? There are different marketing strategies out their for new products. Maybe SIGM is going for medium-volume/high price as opposed to high volume/low price. Lots of decisions for our management, eh?

Thanks for the opinions and please correct my naivete.

Grant
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