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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bmillermn who wrote (314)	11/29/2007 5:44:33 AM
From: bruwin	Read Replies (1) \| Respond to of 4719

Yes, SIGM certainly did have a good 3rd. Quarter. The two Fundamental areas which I believe one should check in the next Quarter are its tax rate (which is currently low) and its pre-tax profit. The company had a very good increase in Quarterly pre-tax profit from $9.2m. to $23.9m. When one adds that to the previous 3 Quarters one gets a TTM Return on C.E. of about 14%, which is not exceptional IMO. However, if it can keep its pre-tax profit in the $20m. to $30m. range, and all else being equal, this should greatly improve it Return on C.E. I see it's currently trading at a TTM P/E of 37, based on its Basic EPS. For me that's quite high, but I see that the average for the Semiconductor sector is currently in the 40's (from Jan. 07 numbers). So "the Market" may regard SIGM as fairly priced at present.