Giant Interactive Group (GA)

Online gaming is strong here in the US...more people in china though CHA-CHING!

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This is a star.

Great China play as this company has a lot of free cash to work with.

CapsMin, S20>33,S50<67,S200>33,C>mx3

It's definitely true that Giant Interactive (GA) is a stable, financially strong company located in the hot Chinese gaming market. However, mountains of cash do not inherently translate into creative game design, and until GA gets a deep pipeline of games with potential going, they are NOT going to outperform the general market. in short, it's all about the games!

Upthumb. Chinese gaming - Online addiction. Excellent cash flow. Zero debt. Huge margins. It will eventually become what it's name aspires to be.

Continues to beat due to low margins. they have revised current game offerings with new features.and they are consumer testing new games as we speak. they sport a young and talented staff and a driven ceo.

online gaming in china will be huuuuge!!!

I like GA because it is well-positioned in the online gaming sector of China, which has immense growth prospects. Although this company's revenues fluctuate a fair amount quarter to quarter, it generates steady cash flow, has a net profit margin of 74.39% (way above sector average) and over $1 billion in assets with NO debt whatsoever.
GA should be able to use these assets to fuel further growth and also to develop more MMO games for the burgeoning online gaming market in China. I think the Worst-case scenario is this: GA grows in tandem with online gaming in China. And that's a very good thing.

Enough cash that I truly believe they can weather the economic storm. The CEO of this company has been around the block several times. He knows both success AND failure. I'm guessing he didn't really like the taste of failure since he took a bit of time off to reflect afterward. Maybe that's why they have sooo much cash and so little debt on this go around. Mr Shi has a loyal following of techies who are extremely bright (he is bright too, BTW). The down side is that this is a very competitive market. They seem to be sewing the fabric of a product base. One stitch at a time...... I'm in. Not just on caps....

For a little bit on Mr Shi look here. The english is a bit tenuous, but you can follow the drift.

http://www.cognet.cn/shiyuzhu%27s%20Column/shiyuzhu_jianli_eng.html

If you don't want to page through the site and read a lot of info, I'll boil it down for you,

1) he started a company.
2) It failed.
3) he took 3 years off. he hiked mount everest with his buddies to reflect. almost didn't make it back.
4) he formed another company and started selling medical stuff. He committed to pay off all of the small investors who got burned investing in the first company.
5) he got all his compadres to help him with SW development for a game.
6) his followers are very loyal and will go to the wall for him.
7) the newco has no debt and has his vision stamped all over it!

There are probably a few things I didn't get exactly right here, but it's my take on the events of the past.

It seems Mr Shi is a stubborn man who won't take no for an answer. His troops follow him and will go the distance for him. It takes a special person to succeed in this type of business. The $10 million dollar question is: Do you want to invest "YOUR" money in this guy and his company.....

Not the end of the Giant story, but wouldn't this investing thing be boring if that was the end? Let's sit back and see what happens here....

testing screen

very low pe given potential growth. lots of competitors but they have solid mmog (massive multi-player on line game) more on the way and loyal and growing following. Could tank, but real shot to explode. imho risk/reward is extremely favorable

The biggest name in online gaming in China, now available at discounted prices.

I've lived with an online game addict. I was just glad that i was renting him the place where he both lived AND played.

I'm bullish on video games

On 11/18/08, a 5 star stock that is down more than 60 % from its yearly high but recent momentum.

ZT online is making 3D version while GA is going to export their games to Vietnam. Remember, they also have new games coming out.

Read tamster's review, Explosive Growth Potential, On sale, Getting in at $6.00