Discussion in 'Stocks' started by scriabinop23, Nov 28, 2006.
earnings day today....
I'm thinking tomorrow would be your day. It looks to be up about 75 cents in the intermarket I think it will roll over for you nice. I don't short personally but there's a clean $3 there for you I'm familiar with the co. Everyone has been incredibly nice to them and indeed there now delivering the goods, bit of a sketchy past though reporting wise. There's nothing to say they really won't boot it next time and you could have a big winner to the downside.
I took a poke at the Jan 25 puts , looks like it beat though is not able to release eps due to option probe inventory up huge and AR up a bit. Still managed to pop AH.
From Herb greenberg:
Sigma Designs: As Strange as it Gets
Yet another one for the books: On Tuesday Sigma Designs (sigm), in the midst of an options probe, reported abbreviated third-quarter results that don't include gross margins.
Yet on the company's conference call the company said it is "pleased to report an improvement" in gross margins but failed to give a number. That prompted analysts to play 20-questions. Finally one said, "...You had mentioned back some three months ago that you were looking at one to two percentage points increase in your gross margin percentage. So you're basically saying that you did a bit better than that."
A company exec responded, "That's correct."
So why not report the number outright? Don't blame it on options-related issues because options don't impact the gross margin -- and just about every company that has had options-related issue, even those who have given abbreviated results, have given gross margins. A spokesman hasn't responded (yet) to my query.
That hasn't stopped analysts, already thrilled with better-than-expected revenues, from reporting "better than expected" margins without knowing the actual number or seeing full financials. At least one analyst, operating in the information vacuum, boosted his stock target.
Reality is that while gross margins may be rising, perhaps to 50%, they have been on a swan dive over the past six quarters from 69% to 48% a quarter ago. During that span, the stock has gone from about $8 to $26, including today's 13% rise. The beat goes on...
"Something smells fishy here" the stonedinvestor
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