SIMG?

Silicon Image, the inventor of the DVI, HDMI, and SATA audio video and data interfaces popped 35.8% today.

Why I asked? I just looked at them last week and saw a yearly loss of ($1.18)/share on a $4.62 stock. Revenues had been falling by double-digit percentages (-52, -40, -15%). There was a glimmer of hope in that the MRQ's sales were up 19.6%, and earnings were $0.02/share. Projected earnings were $0.05 and 0.03/share for the next two quarters. Whoop-tee-doo.

So today they announce quarterly earnings of $0.12/share (vs. 5c estimated) and revenue of $60M vs. 34-37, then $44.6M over the last year. So now they have a forward P/E of 12.9, just like everybody else. There's mention of back-royalties, so maybe their lawyers have hit pay dirt and opened up some revenue streams. The proverbial magic cow that laid the golden egg ... or something like that. :-) We'll see.

Don't get me wrong. I love their technology, and owned them when no one (I knew) knew what SATA was. But SIMG led me to coin the term "serial disappointer". They'd run good for a while, then blammo, all gone. I went on a cruise; they tanked 26% in one day. (That's a good reason to put [trailing] stop loss orders in before you go on vacation.) Somehow I managed to make some decent money when it was all done.

So call me skeptical and don't be surprised if I short SIMG. Or go long. I'm really just a little perplexed and need to round up a little more research.

Happy Hunting!

Addendum: Former Skeptic & MHL.