SIGM trading near liquidation value (Strong Buy)

this is a tobin smith changewave play. after riding it down form a high of 60s the finally threw in the towel yesterday and put out a dont buy.
"Sigma has been a part of our portfolio for well over a year, and we recommended taking some profits off the table in December after its run last year. We do expect the stock to slowly recover from this "news," but until this story sorts itself out, we are changing Sigma Designs to a "Hold."

For those of you who have a position in the company, hold tight but don't add to it until we learn more details and are able to reassess Sigma's prospects for the remainder of 2008."
Hit 'em straight,



Toby Smith
Executive Editor

 

Please only quote real analysts and not bloggers.

 

hey, he is must be an analyst since i see him on fox news analyzing every day.

 

Yet the guy sold at the low yesterday after riding the stock from $60.

 

This stock went down on friday during a big up day. Is this a good sign?

 

I swear to you, there is no better fade than the Bullish 'analysts' on Fox's 'Bears&Bulls.'

 

I don't see why you would care or use the liquidation value in any kind of analysis. Assuming the company did have to liquidate, it would mean they claimed bankruptcy and you won't get crap being a stockholder, so it's just pointless looking at the liquidation value.

And if this market is possibly turning up, why do you want to buy a stock that went from the 70's to the teens in five months?

 

Finally got out. Stock has too much downward pressure. Still got a nice 480 bucks out of it though. Sure beats working!

 

FYI they don't have to file for bankruptcy to liquidate. the can simply return capital to shareholders in the form of dividends or special dividends.

to the 2nd point it is called value buying. nothing makes sense with this stock so i am trying to figure it out.

there is another stock out there similar to this value situation but i can't say because i am in the trade at work right now. they are in the insurance industry and have a p/e below 4.

 

Liquidation is usually referred to when a company is going to claim bankruptcy or cease existence and they are going to distribute "All" leftover assets. How many public companies decide they no longer want do business and close shop?

So they may return capital to shareholders in the form of a dividend. How often do you see a stock that goes from 70 to 15 in a few months do that?

What is value buying? How do you determine a value if the numbers you are looking at may be not correct? People bought Enron and Worldcom all the way down because they perceived the stock to be a value. Was it though?