Sigma Designs, Inc. (NASDAQ:SIGM)

wow

The masses want video. Sigma has the technology to provide it over the airwaves.

This company own the IPTV set top box market with competition far behind. W'e only in the beginning with lots more price appreciation before us.

Pro
Earnings growth in the past year has accelerated rapidly compared to earnings growth in the past three years. Positive
Previous day's closing price for SIGM was significantly above its 50-day moving average. Very positive

Con
The price-to-earnings multiple is higher than the average for all stocks in the StockScouter universe. Negative
The ratio of SIGM's price-to-earnings multiple to its five-year growth rate is above the average of all stocks in the StockScouter universe. Negative
Fundamental A
Ownership C
Valuation C
Technical A
Overall score 7+

Growing so fast that the analysts are just catching up to last quarter.

very strong quarter to quarter sales growth continues, This is a stocck not to be missed,

IPTV has arrived and Sigma produces the chips that make it happen. The recent pop is just the beginning as we are very early in the adoption of this technology.

Hop on board. This train is just picking up steam.

I like watching tv and "surfing the web" (how old is that term). Anyways, so do many other people. New tv's equate to new parts and new developments in technology. Put two and two together.

Sigma Designs has become a substantial position in my real-life portfolio today. It's run up alot over the last 12 months, and according to MSN has a a 12-month relative strength of 98! (This means it has outperformed 98 out of every 100 stocks on the major indexes.) Now, I'm not a momentum investor, so I have a tendency to be cautious when stocks have run up so much so quickly. In this case, though, I see it as a strong indicator that this company is obviously doing something right and grabbing the attention of an increasing number of investors. The most important thing to consider is that I believe this company and it's stock price have plenty of room to run in its growth phase. ("plenty" is an understatement...This game is only in the second inning.)

Profit margins are at 16% (TTM) so that's a healthy sign. I generally buy companies with small market caps, and Sigma's size fits that criteria well at a little under $1 B. Analysts ascribe a 28% annual growth rate over the next 5 years, but a pretty sharp analyst I know thinks this may be too low an estimate. For this year, sales growth comes in at 94% and earnings growth at 223%. (per Yahoo's numbers) Now the best part of the deal is that Sigma only has a forward p/e of 20. Therefore, I think this company is still a bargain.

IPTV is this companies main driver, and it is going to be HUGE over the next 10 years. There are obviously dangers- competition, in particular. Right now Sigma is the top dog, but we need to keep an eye on the competitive landscape for sure. Most of the IPTV business right now is coming from Europe right now, and Asia to a lesser extent. The whole planet is still wide open with opportunity for businesses involved with IPTV.

Recent hike, other players

Based on robust earning s and technical analysis

Btw, I got my technical reports from PALMA RESEARCH (www.Palmaresearch.com) since it is free for the time being. If someone can tell me whether they are good or whether there is another similar service I would appreciate that information. Thank you so much.

blow out quarter with continued demand for IPTV, Blu ray, and other video devices that use their chips.

Passed 34.10 buy point on heavy volume breakout
Group leader in strong industry, solid fundamentals and accelerating earnings growth

Definitely a good company and a good stock.

The leader in chips for set top boxes and Blue Ray

Shlomi Cohen - SA

great expectations, but very expensive.erngs070604.xlsx

Still relatively unkown. Best products in market place. Dominant in market place with an incredible list of customers.

Well managed, financially strong