SIGM no shares available to short

Discussion in 'Stocks' started by scriabinop23, May 28, 2008.

  1. Anyone buying the fear, uncertainty and doubt argument? (that somebody "knows something" ?)

    I still say its a great long here before earnings tommorow. Loaded up the boat the last 2 days again after trimming it down.
  2. Keep loading up long!

    These shorts are trying to kill this company. Their expectation is low since they lowered guidance during the Q4 release. Shorts got desperate yesterday and spread false rumors.

    The short covering could send this up 100% from here.
  3. i love the setup here, bot 22.50 calls for a measley $1.30 today. Best risk reward going with a stock that is short just under 40% of float going into earnings.

    Good luck all.
  4. Actual short interest is closer to 50%
  5. omg.... you are buying stock now ... :)
  6. Options my good friend, options.
  7. i don't care how you justify it.... :) that option my friend is made up of some stock.
  8. With a PE near 8 all bad news should be priced in
  9. Sigma is priced for catastrophe, so anything less nasty than such should be very liberating.

    Some stocks don't get any respect until they grab it by the balls.
  10. Come back to this thread after earnings tommorow.

    I ran some numbers. If they deliver 60M in revenues and guide 265M for the remaining 9 months, they are keeping guidance up. They will earn 2.70 for the year, or somewhere around that, assuming last Q's OPEX is duplicated through the rest of the year. A 7.96 PE.

    Worst case scenario:

    They meet 60M this Q and guide down to 140M for the remaining 9 months (200M total for the year), and reduce OPEX to meet previous year's #s (to reflect lower sales/etc), they will hit around $1.50 for this fiscal year's earnings. A 14.33 PE, but a negative earnings and revenue growth rate y/y. But remember they still have a book value of $10 even with this projection. So what does the business get valued at? Cash? They'll have to basically say that they lost half of their business to Broadcom next year and nothing else they are doing is worth anything. Considering the manipulative powers of the shorts, I'm sure they'll be able to get it back down to $15. But I'd still buy at that price considering value.

    There's been absolutely nothing but idle speculation about Broadcom for next yr. The reality is that this company owns the software and chip market for this IPTV product, and is diversifying in different directions as well.

    Oh one last thing potentially hanging over them. They have 43.9M of auction rate notes. Worst case is a 20% hit on those. 8M (and even less after taxes) of a one time charge should not have more than a .50c impact on the price of this stock.

    Hopefully when you check this tommorow, we'll all be above 30.
    #10     May 28, 2008