061615_payne_picks

061615_payne_picks

An Internet-of-Things Stock Play

Let’s talk about Sigma Designs (SIGM).

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I’m pretty sure I’ve mentioned it before. The stock’s done pretty well. Take a look at that chart (watch the video clip above). Last week they posted earnings that beat the Street by 800%. By the way, that sent the fiscal year ‘16 earnings estimates to 30 cents from 21 cents. Those earnings, by the way, from the last quarter, 9 cents from 4 cents the quarter before, from a loss of 14 cents the year before.

Listen, this is a smart-home play. An Internet-of-things stock. You need one of these in your portfolio -- or maybe two. The company’s chipset, the systems on its chip, they power the wireless home of the future. They’ve got the smart home, smart set top, smart TV.

By the way, the smart TV really is the thing. It drives what they call the over-the-counter OTT content: video games, apps, web browsing games, music, photo sharing -- all of it. Management’s got a great product line. They keep putting it on display.

The execution has been impressive. The stock’s been consolidating, you can see on the chart. It flattened out a little bit. But I think your next leg higher could take it to $14, and beyond there I think it’s got potential to $16.

DISCLOSURES

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Sigma Designs (SIGM)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
JIM F. N N N N
JIM A. N N N N
HILARY N N Y N
MATT N N N N
SCOTTIE N N N N

 

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