SGMA - SigmaTron: Why The Stock Is Soaring And Why It's Not The End

• In just one week, SigmaTron's shares soared >58%.
• The growth was driven primarily by a strong quarterly report - SGMA's pre-tax net income turned out to be ~45% of market capitalization.
• This high profitability is an overnight effect. However, this does not mean that the company will stop growing at or, most likely, above its usual pace.
• Based on DCF and precedent transactions valuation, SGMA is grossly undervalued. I see a fair price at least 38% higher than the current one.
• I'm not holding yet, but I am going to buy the stock when it corrects a little. So I recommend you to do the same thing.

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