5-Star Stocks Poised to Pop: Sigma Designs
By
Brian D. Pacampara
September 2, 2008
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Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip maker Sigma Designs (Nasdaq: SIGM) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Sigma Designs' business, and see what CAPS investors are saying about the stock right now.
Sigma Design facts
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Headquarters (Founded)
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Milpitas, California (1982)
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Market Cap
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$455.25 million
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Industry
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Semiconductors
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TTM Revenue
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$257.7 million
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Management
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Founder/CEO Thinh Tran (1982)
CFO Thomas Gay III (2007)
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Return on Equity (average last three years)
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24.8%
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Major Competitors
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Broadcom (Nasdaq: BRCM)
STMicroelectronics (NYSE: STM)
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CAPS members bullish on SIGM also bullish on
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Apple (Nasdaq: AAPL)
General Electric (NYSE: GE)
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CAPS members bearish on SIGM also bearish on
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Ford Motor (NYSE: F)
Washington Mutual (NYSE: WM)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 360 of 370 of the All-Star members who have rated Sigma Designs -- some 97% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include gunark and Carbarns, both of whom are ranked in the top 10% of our community.
In May, gunark wrote that Sigma Designs is a:
Major player in emerging technology (IPTV). Unlike in other such "emerging" situations (WiMAX vs LTE vs HDPA, or LED vs OLED vs Plasma) there is no real alternative here. IPTV will replace existing broadcast and cable delivery technologies, sooner or later.
A more recent pitch from Carbarns last month followed that bullish line of thinking:
IPTV is just getting a foothold in the consumer's vocabulary. Watching YouTube and social networking media content will blow this industry wide open and Sigma is poised to exploit it if they play their cards right. Watch to see in their next quarterly report if they don't offer more forward looking financial comments.
What do you think about Sigma Designs, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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