Thoughts on Sigma Designs, by Michael Yu posted on Seeking Alpha:
Excerpt: "Just released Sigma Designs (SIGM) Q1 results (see conference call transcript) are probably the worst nightmare for a non-cyclical growth company to shrink both top and bottom lines. But is this the beginning of the end of SIGM or does this create an opportunity to own a piece of a great company on cheap?
I think it is the latter. Their main business – IPTV and Blu-ray HD DVD – will remain sluggish for th remain of 2008, but may have an significant upswing in 2009, benefiting from the next generation IPTV 8654 media processor, which "provides a 50% improvement in performance along with lower overall system costs"; delevering of their new Blu-ray chips and possible Taiwan and China design wins; and many of their initiatives may come to fruits starting the begining of next year as well, leading to potential upside surprises."
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