ngoyal

Sigma Designs: Too Inexpensive to Overlook

MrT, thanks for the comment. Although I am not sure why the earnings call was rescheduled, I can comment on the buyback. The company came under scrutiny last week when insiders sold a chunk of shares when the stock price was already fairly depressed. In response, the company stated that this insider selling was of shares received upon exercise of a portion of stock options that would have expired on March 15, 2008 if not exercised before that date. They later announced a buyback of 2M shares, which gave notice to the market that the company believes these shares are undervalued. This buyback should provide a buffer to the downside should the stock price continue to slide.

Sigma Designs: Too Inexpensive to Overlook

Coach, those are some great points. Although the company will face a higher tax rate, the diversity of new products, growth potential, and seemingly low expectations by the street definitely favors owning the stock at these levels. Even if there is near term volatility, the risk/reward for a long term investment is definitely in our favor. And with U.S. stocks continuing to lag, owning a company with such a large portion of it business done internationally is the way to go.

Sigma Designs: Too Inexpensive to Overlook

Thanks for the comment,

Waiting for the conference call would not be a bad idea, as I did mention the stock could experience some volatility in the near term. The company will still beat estimates (regardless of backlog issues) and raise guidance for the full year. That is why I personally bought the stock here, and plan on adding more once I hear the call.

In regards to backlog, yes, backlog can have a negative effect on the current quarter. However, this backlog can also have a positive impact on the company's guidance for future quarters, which is what most investors will be focusing on.

NutriSystem Looks Sweet Heading Into Earnings

CrossProfit, although I cannot defend my choice in picking NTRI, I will defend my track record. Although a few of my articles did not provide a time frame for investment, the retail picks surely did provide a time horizon as I provided year end targets. My solar article provided targets with time horizons as well. And you seemed to leave out many of my picks which brought great returns.

That said, here is my track record as per my SA postings. These are the % gains/losses based on the price targets I wrote of. For those with no price targets, I used today's price in deriving these figures.

Short YGE - 30% gain
Short SPWR - 40% gain
Short STP - 45% gain
Short CSIQ - 20% loss
Short FSLR - 10% gain
Short ASTI - 5% gain
Short ESLR - 30% gain
Long NTRI - 25% loss
Long COH - 5% loss
Long AEO - 2% loss
Long LULU -22% gain
Long SHFL - 35% loss
Long SHRP - 10% loss
Short CROX - 53% gain

If you average all these returns, there is no questioning that my recommendations have outperformed the market by a wide margin.

NutriSystem Looks Sweet Heading Into Earnings

Thank you all for your comments and feedback. NTRI's results were quite disappointing. Even though they beat estimates, their revenue guidance was lowered so dramatically. The tapered guidance was likely priced into the already depressed stock, but the amount by which forecasts were slashed was unacceptable, and justifies the negative reaction in the stock price.