Sigma Bounces Back
Sigma Designs Inc. (Nasdaq: SIGM) took a bath yesterday after the long-awaited competition with Broadcom Corp. (Nasdaq: BRCM) seemed to arrive. Broadcom and probably STMicroelectronics NV (NYSE: STM) are expected to get Microsoft Corp. (Nasdaq: MSFT) MediaRoom certification eventually, spoiling a monopoly Sigma has been enjoying.
News of Broadcom getting into Microsoft's IPTV plans sent Sigma stock down $6.53 (14.8%) to $50.55 yesterday. (See Broadcom, Microsoft Team.)
But wait -- the cavalry has arrived. A Deutsche Bank AG analyst is saying Broadcom isn't MediaRoom certified yet. Seeking Alpha has some details -- and also pointed out yesterday that Sigma stands to benefit if HD DVD continues to struggle.
Sigma shares are up $3.95 (8.9%) at $47.94 in response.
— Craig Matsumoto, West Coast Editor, Light Reading