Wednesday, June 28, 2006

Calls of Note Part 6

- Baird notes that Sigma Designs (NASDAQ:SIGM) has been among claimed option backdaters. They reviewed co's 14 option grants over the last 12 fiscal years and found that options were granted four times on the date of the stock price low for that corresponding fiscal year. 10 of the 14 option grants were within 25% of the stock price low for the corresponding fiscal year.

However, firm says that fundamentals remain intact, with strong momentum in IP set-top boxes and portable video players, while digital TVs and HD DVD should act as catalysts later this year. Reits Outperform and $21 price target.

Notablecalls: SIGM shares have taken a big hit in the last 2 sessions, falling over $2. It is tough to go after a falling knife, but positive chatter from Baird combined with 16% short interest could turn into short-term bounce.

1 comment:

MktResearcher said...

Roth is also defending SIGM this morning. Note that both firms have high targets for SIGM - Roth has $20 and Baird has $21.