Michael Yu_

Sigma Better Designed for 2009

You brought very good points, with facts and sound logic. At 6.6 times cash flow, the stock is priced in all the known negatives and then some - the fear factor and the short selling factor, which will stage the stock for the perfect storm for good.

If I learned anything from Buffet, it is to evaluate a company as business entity. As a business, SIGM commands lion's share of the IPTV market (about 100% Microsoft based and 75% Linux based), a significant player (about 30% to 40% share) in the Blu-ray market; it is positioned to reap the first-to-market benefit in the new products it has recently announced, as you mentioned in your comments. Its great relationship and working experience with Microsoft and the telcos will make its dominance hard to challenge in the IPTV, Blu-ray and some of the new markets it is entering.

And you don't discount a company that is run by its capable founder. Think of what differences Bill Gates made on MSFT and Michael Dell on Dell. The boss at SIGM has every incentive to make the company great, and that put me at ease at night.

Last but not the least, about 95% of the company's revenue is from outside of US, making it immune from the economic slowdown (or recession, depending on who you ask).

I didn't do my regular DCF analysis, but i know i have a fat margin of safety. Paraphrasing someone once said, a fat guy is unmistakably easy to tell, even you don't know how many pounds he weights.