JEHill72

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    • ON: Tue Apr 15th 16:32 PM
      Commented on:
      Baird: Sigma Designs Losing Major Customers
      SIGMA DESIGNS INC COM Company Overview
      Sigma Designs, Inc. (Sigma) is engaged in providing video-oriented product solutions. The Company has chipset and board solutions for emerging convergence products, including video over Internet protocol (IP) television (IPTV), high-definition (HD) digital versatile disc (DVD) playback, high-definition television (HDTV) reception, personal video recording (PVR) and video-on-demand (VOD). It specializes in silicon-based digital media processor chipsets. Its core technology allows it to offer chipsets that provide decoding of H.264, moving picture experts group (MPEG)-4, MPEG-2, MPEG-1 and Windows Media Video 9 (WMV9) content. Sigma sells its products to manufacturers of consumer electronic devices and products. Sigma's chipset products consist primarily of video and audio decoding chips, such as the EM8400 series, EM8500 series, EM8610 series, EM8620L series and SMP8630 series. In February 2008, the Company acquired VXP Image Processing business from Gennum Corporation.
      Reuters ProVestor Plus Company Report

      Shareholder Equity
      Shares Outstanding 26.5 M
      Institutional Ownership 91.42%
      Number of Floating Shares 26.0 M
      Short Interest as % of Float 41.35%

      Valuation (MRQ)
      Price/Earnings (TTM) 8.91x
      Price/Sales 2.52x
      Price/Book 1.83x
      Price/Cash Flow 3.83x

      SIGM's P/E Ratio is lower than 72% of other companies in the Computer Peripherals industry. This typically means that investors are willing to pay less for its level of earnings relative to future growth.Profitability (TTM)
      Gross Margin 50.99%
      Operating Margin 25.90%
      EBITDA Margin 27.44%
      Profit Margin 31.74%

      SIGM's Gross Margin is more than 65% of other companies in the Computer Peripherals industry, which means it has more cash to spend on business operations as compared to its peers. As indicated by the Operating Margin, SIGM controls its costs and expenses better than 97% of its peers.Financial Strength (MRQ)
      Quick Ratio 8.29x
      Current Ratio 9.10x
      Debt/Equity 0.00x
      Debt/Assets 0.00x
      Management Effectiveness (TTM)
      Return on Assets 30.82%
      Return on Equity 35.23%
      Return on Inves. Capital 35.08%

      The Return on Equity for SIGM shows that it is able to reinvest its earnings more efficiently than 99% of its competitors in the Computer Peripherals industry. Typically, companies that have higher return on equity values are more attractive to investors.Growth Rate (TTM)
      Earnings Per Share 899.7
      Sales 142.5
      Dividend (MRQ) --

      SIGM's EPS Growth Rate is greater than 98% of its peers in the Computer Peripherals industry

      And thanks to the rubbish announced by the "analyst" at Robert Baird today, you can by Sigma Designs for a P/E you would expect to see for a company securitizing subprime mortgages and selling risky SIV's and CDO's...Go long on Sigma and ignore the noise, Microsoft Media is using Sigma's SMP 8654 SoC's, thereby ensuring Sigma has the inside track for IPTV for the long haul (just as they utilized Sigma's SMP 8634 SoC's back in 2004--you can read about that directly on Microsoft's website)...Sigma looks good to me! And as far as the stock's fundamentals go, Sigma crushes those of Broadcom (on measures such as ROE, ROA, profit margins, growth for the next 5 years, etc.) Buy Sigma ultra cheap...Taking Baird's advice from today on BRCM is like trading US dollars for Zimbabwe dollars....
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