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Technology Stocks : Sigma Designs- Up 50% per Month- Why? -- Ignore unavailable to you. Want to Upgrade?

To: Alex Dubrovsky who wrote (301)	2/18/1998 10:34:00 PM
From: Grantcw	Read Replies (1) \| Respond to of 849

Alex, It's nice to see someone is out there. Check out this article. www2.bfls.com For those of you reading, but lazy, it discusses the near term future and problems with DVD but mentions Sigma Designs new MPEG-2 Decoder as a leader in its field. The article seems to question the market acceptance of DVD over Christmas, but it also hinted at being positive over the longer term. I also checked out another distributor. The only MPEG-2 Decoders they carry are the two by Sigma Designs which sell for around 250 and 350 depending if it's for a LAN or not. The third one, not made by Sigma, must have had some extra capabilities because it was priced at $1400. In my opinion, if these DVD-Rom sales start picking up in the near future, we will be sitting very pretty. Any thoughts on earnings coming up anyone? Alex? Grant BTW, I now own a VERY small amount of shares in this company.

To: Alex Dubrovsky who wrote (301)	2/18/1998 11:44:00 PM
From: Grantcw	Respond to of 849

More research, The following is just my opinion and attempt to understand the market for Sigma's prodcuts and its relative value. I was searching through various vendors of DVD products on the internet and the only DVD MPEG-2 Decoder board I saw under $1400 was Sigma's Hollywood. Many of the sites stated that this product was the leader of its market segment. I also saw an estimate by Microsoft and a publication that estimated DVD-Rom enabled computers would be 14-15 million by Christmas of this year. As I see it, the only way to play movies on a DVD-Rom is to buy an MPEG-2 decoder. As stated above, the only reasonably priced decoder I've found is Sigma's. The MPEG-2 Decoder's I've seen had a low price of around $250. Would it be safe to assume the selling price of the decoders to the vendors would be $100 on the low side? So, IMO, what we have here is a $100 unit in a potential market of $14-15 million units for a company that is priced $40 million. Using these assumptions, Sigma would double its sales, I think, by selling 40,000,000/1,400,000,000 = .029 or close to 3%!?! Are my assumptions right here? From the research I've done, I would think Sigma could sell to 3% of the market this year fairly easily, but I could be wrong. On the down side, what's up with the class action suit I've seen on the news? What is the potential downside to this company? Grant