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Pastimes : Trade Blogg Ideas Inter Alia -- Ignore unavailable to you. Want to Upgrade?

To: Rutgers who wrote (117)	12/27/2005 8:40:02 AM
From: Rutgers	Read Replies (1) \| Respond to of 285

SGTL - status update - forbes.com SigmaTel (nasdaq: SGTL - news - people ) designs analog and mixed-signal integrated circuits for a variety of consumer electronics, including the iPod Shuffle from Apple Computer (nasdaq: AAPL - news - people ). SigmaTel started 2005 well, guiding analysts’ estimates higher, but by midyear a reversal of fortunes led to weaker-than-expected results and downgrades. Further guidance reductions followed in October, pushing the stock below $13, 71% off its 2005 high. The company has no debt, plenty of cash and good cash flow. FROM PRIOR POST OF 10/10/2005 They warned after the bell. Hmmm, I don't like this one bit. If this wasn't such a value play, I would cut her loose right here. But, the conf call was about as positive as it could be under the circumstances. And ML has said that mgt is great and I do like the acquisition moves. Thus, I will likely stick around until at least the conf call on the 25th (two weeks) and listen to 4th Q guidance. But, if there is no tangible to, I will cut bait. They warned on Q2 and now on Q3, which is now two red flags. One more and .... of course, with such high short interest, and with what they have coming down the pike in '06, this appears to be the golden oppty for shorts to cover. Of course, I have been wrong on this one for sure. And it sure w/n hurt if (1) they also announced a stock repurchase plan; and (2) officers stopped selliing albeit from a 10b5. forbes.com.