+ Watch GA
on My Watchlist
Giant Interactive Group, Inc. develops and operates online games in the People's Republic of China.
Another real-life holding of mine. Earnings have grown at an annualized compound rate of 19% since 2011. EPS has grown at an annualized compound rate of 14% since 2010. Unfortunately, the pre-tax profit margin has been falling the past 3 years, so that is not a good thing, but it was still around 55% last year, which is a good profit margin, (though not great for a games/software company). The earned-on-equity has been fluctuating, coming in around 30% last year, (which is again good but not great for an online games company). The company has no debt, (which is one of my most favorite metrics). The current P/E is about 50% higher than its historic average, so the stock is no longer cheap. And the PEG ratio is a little over one, so reasonably priced by that metric, but not cheap. The company raised its dividend by more than 50% last year, so that is a positive sign. The stock yielded around 7.4% last year, so that is a great dividend yield, (and what originally attracted me to the stock). I think the stock price could grow by over 50% over the next 5 years. Add in the dividend yield and the stock could return 12% or more each year over those 5 years. This is below what I would normally accept as a return, (I generally want a 15% annual return), but I am giving this one a shot due to the good yield and the fact that they raised the dividend last year, and with the payout ratio being below 50%, they could still have room to raise it over the next 5 years, especially if the earnings keep growing. Not as positive on this stock as I am on some of my other picks, so I am curious to see how this plays out for me.
Giant Interactive has positioned itself well in the Chinese gaming market, which is booming with no plans of slowing down anytime soon. With all-star titles like ZT Online and World of Xianxia, GA should rake in the profits for years to come.
Strong momentum supported by lowest fundamental valuation ratios. Healthiest dividend and nice thick-margin operations. 12.
good dividend provider
Video game addiction will be recognized as the cause of the fall of the great Chinese Communist Economy and Civilization in 100 years. Right after the fall of Western Civilization from Guns killing people and Pharmaceutical Drug Addiction causing zombies to take over the Gun arsenals. GA rocks!
The company will continue to produce great earnings.
Has large portion of China game activity.
cheap valuation to growth no debt lots of cash used to buy back shares paying real hard cash.careful China has ways of bleeding companys
Beat earnings predicted for past three quarters, as well, has beat the s&p for past 2 years
Its statements are healthy and its price is reasonable.
Seems like a good pick at fair price, might think of adding this to real protfolio.
Lot's of cash, a good dividend...payout ratio of 36% so lots of room to increase dividend. Trading at a discount to book value. No debt.
Escapism is big money. Keeping the players happy.
Strong excess cash position (I show about 850m vs their 1,778m market cap)Decent dividend (18 cents vs a $7.61 share price, 2.4%)Cheap: Earning yield of about 12%Good return on capital (I show on $22m of working capital after you pull out excess cash).Good prospects/growth - new games in pipeline after a year of being a bit stagnant
Profit, gross, and operating margins all over 60%. Cash of $748.5 million with no debt. Gaming market in China is growing as people have more disposable income. EPS growth of 44.4 over last 3 years. Revenue growth of 47.2 over the last 3 years. Free to play MMO's are vastly more popular than subscription based MMO's in China. New sequel for their flagship MMO due in 3Q 2010. Also have several other very popular game franchises online. The main worry I have is that MMO's, which is primarily their focus, are very expensive to operate and develop so a huge flop could be devastating.
Small cheap China stock already paying a dividend. Awsome!
Virtually non-existent pipeline of future games. A wad of cash...for what?
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