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

To: gizwick who wrote (53838)	4/30/2014 8:59:14 PM
From: Elroy	Respond to of 78627

Here's a tech stock with a cheap valuation that might be worth a look. SIGM, they're a fabless semi stock with exposure to TVs, Set top boxes, and some other consumer product focused areas. They also have some high margin licensing revenue, which indicates that they have some intellectual property that others will/need to pay for. They've got $89m cash, no debt, and a market cap of about $145m. The company is forecasting sales of about $200m over the next four quarters, with ~$35m-$38m expected in the upcoming quarter (so the full year forecast is heavily back end loaded). Gross margins are nice in the 55% range. Annual expenses should run about $105m. So the valuation is extremely cheap if they are going to meet their own guidance. Unfortunately I don't know much about their products or their competition/position in their areas. If anyone has info about the company I'd love to hear it. For the time being I'm just watching the shares - and all they do is fall, which is great when you haven't bought yet! It seems if the current quarter is a bit light, or there is a general summer sell off, one might be able to buy this stock close to a cash per share level, which is pretty nice for a 55% gross margin semiconductor company.