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Technology Stocks : SIGMA CIRCUITS

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To: Thom who wrote (80)5/5/1996 5:55:00 PM
From: Karl Drobnic   of 107
 
My understanding is that the secondary will be done if it can go off on terms favorable to SIGA. If the price is depressed, they won't do it. It pretty much leaves it to the underwriter to keep the price supported. So it's a good trading buy if the price dips. SIGA mngmnt. appears to be in no hurry to give away the stock at a cheap price. One savvy holder of SIGA stock calculates his estimate of SIGA's quarterly earnings 4 quarters out and multiplies by 50 to get a target price. Given that sales in TX are apparently going through the roof (and that's where Compaq's at), I'd expect operating EPS to be strong, and I'd discount any extraordinary items. SIGA is likely to look for another acquisition if the secondary goes off. They need another facility near clients outside California.
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