GigaMedia Limited (GIGM)

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A holding company which through its subsidiaries, develops and licenses online gaming software and provide application services, owns and operates an online games business, and provide broadband Internet access services.

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Avatar pytheian (94.96) Submitted: 5/13/08 12:34 PM : Start Price: $16.82 GIGM Score: -39.03

This is a good one:

- Discount PEG (.84x, one of lowest in industry), so P/E of 27x only prices in portion of growth
- Obscene Margins (78.7% Gross, 22.8% Op, 24.1% Net)
- 77% TTM Revenue Growth; motored to 59% MRQ so maintaining momentum
- 24.7% ROE, 17.2% ROA, 25.3% ROI are class of industry
- Debt is only 15.5% of capital
- FY09 earnings estimates are in a narrow band (1.04-1.19 per share)

"We start 2008 with an excellent quarter, a strong foundation from which to introduce a new line-up of top games and offerings," stated CEO Arthur Wang. ''Our plans to launch in Japan this quarter, to add casino products to our poker client and to acquire or partner with a sports betting firm all should drive even greater momentum and make 2008 another record year.''

Buy it.

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Avatar rogdives (< 20) Submitted: 9/20/08 11:36 AM

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I believe in GIGM, just bought 4000 shares, when the market took it's worst beating since the depression. However, for such a wonderfully well run company, I am at a lack of comprehension how such a "almost recession proof" sector like this could loose so much stock value in such a short time. This isn't a casino, remember; it's online gaming software catering to clientele that aren't just going to stop playing. In view of the top bull pitch dated 5/13, I'd love a theory/explanation as to what's driven it down so severely, since there is no negative company news, there was huge insider buying last November through March at roughly $16-$17 dollars a share, numbers are still excellent, and it's customer base hasn't gone anywhere.Did it just fall with the rest of the market worldwide or is there more to it? Sign me stumped and wondering....

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GigaMedia Limited (GIGM)

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