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

To: Daniel Simon who wrote (540)	11/9/1998 11:26:00 AM
From: chris w burford iii	Read Replies (1) \| Respond to of 849

Sigma reported a contract with Matushita (Panasonic in the U>S>) to provide silicon for DVD RAM cards. Another example of a real product with a formidable company. cwbiii

To: Daniel Simon who wrote (540)	11/12/1998 1:51:00 PM
From: Grantcw	Read Replies (2) \| Respond to of 849

Hello Daniel, Does this company report in 2 weeks? Any expectations? I think the stock will start to move up to around 3 by earnings (loss) day. I also expect that sigma will report a wider than expected loss as they write down about 1 million old inventory. Revs will be about flat with last Q and they will say that next quarter will be profitable. After which point the stock should begin trading around book (i.e. $3.5). I'm using last Qs numbers $43mil = total assets and 12mil shares. These are all guesses. Maybe someone more knowledgeable will speak up. I'm pretty sure that the company reports earnings sometime around Thanksgiving. I don't understand how you are predicting an inventory writedown, could you tell me why you are predicting one? Revenues should be a good deal this quarter than the last quarter and the same quarter year ago. Take a look at CUBE's earnings report last quarter. Their dvd revenues more than doubled if my memory serves me correctly. It's logical to think that SIGM's dvd-rom revenues (a large part of their total revenues) might do the same, especially considering the new clients SIGM has garnered over the last few months. IMO, this will also impact the bottom-line, making SIGM at least a penny or two positive this quarter. The stock price may be tricky over the next few months. Small caps beaten down over the year tend to get tax-loss selling in December. I'm hoping that the earnings report will launch SIGM much higher so that most of the stock-holders of SIGM are at a gain going into December and won't have the tax-loss incentive to sell. Either way, I think SIGM has a very bright future which is just starting to blossom with this earnings report. See ya and good luck, Grant