SIGM trading near liquidation value (Strong Buy)

Discussion in 'Stocks' started by MrDODGE, Apr 15, 2008.

  1. Something had to have happened to its core business for it to run up as quickly to $75 as it did, and fall even faster.

    What is the issue?
     
    #11     Apr 15, 2008
  2. lumpy earnings... Motorola over ordered that quarter it ran up. Then the next Q SIGM management and said current Q will be light, but then it will pick up.

    Lost faith I guess.


    Someone teach me how the hell this is being valued. The shorts are pricing this about 2-3 years out for a collapse of the underlying biz ... I think its ahead of itself.
     
    #12     Apr 15, 2008
  3. Shorts are trying to kill this company (50% short interest). Fair value is WELL over $25 per share!!!

    A PE under 7, are you kidding me? Even if earnings decline this is pure undervaluation.

    They have already announced that they are buying back almost 20% of the float.
     
    #13     Apr 15, 2008
  4. That stuff is all voodoo my friend... just look at the chart.

    This stock has had its day in the sun. it may ONE DAY come back but other than a retracement bounce that aint happening soon regardless of what the fundies are saying.

    Its all in the chart.
     
    #14     Apr 15, 2008

  5. Yeah, TA says everything..... IT IS AT AN 18 MONTH LOW! There is NO chance for bankruptcy and the price action makes it look like BSC.

    This isn't going lower than $13

    S&P has a fair valuation of $39.10
     
    #15     Apr 15, 2008
  6. Okay T/A is certainly not perfect. But in this case the charts been plainly showing how weak the stock is and has been a much more accurate indicator than the PE or any fundamental ... that point isnt arguable.

    So MY point is...with all of the stocks out there where the chart is showing strength why are you fixated on this one ?

    I play the trend...and right now I see the rest of this month going up so Im buying calls. THIS is not on my very long list...cuz its weak...for whatever reason you and i dont know about no one wants this POS.
     
    #16     Apr 15, 2008
  7. #17     Apr 15, 2008
  8. THIS one is important because they have $8.00 of cash for every share of stock and with total liquidation they have $13.00 for every share. Simple analysis.

    At $16 this is a STRONG BUY!
     
    #18     Apr 15, 2008

  9. http://scriabinop23.blogspot.com/2008/04/sigma-massacre-what-to-do.html

    Here did an analysis... Will get on seekingalpha tommorow.

    They have $9.60 in assets (with liabilities backed out) per share, approximately.

    These numbers do provide a floor. Is this FMD or what? But the difference is viability is much higher even near term here.
     
    #19     Apr 15, 2008
  10. As a long term investment you are probably right...

    as a trade (which i thought this forum was for) its not.
     
    #20     Apr 15, 2008