GigaMedia Limited (NASDAQ:GIGM)

I think $10 will be a good real money entry point.

good price for a well run company.

At this price it is a steal.

Growing industry, in fast-growing part of the world, low PEG ratio.

Growth and New Revenue streams coming down the pipeline!

-Hellgate London

-Real Money Mahjong

-Phantasty Star Universe, SEGA

-Granado Espada , IAH

-Holic, MGAME

-real-money Japanese games

-SoftStar Entertainment

-NBA Online, Electronic Arts

"GIGM is just getting started in Asia, opening up in Japan and its established European business is doubling each year. I think this stock is a strong buy and will handily beat future earning projections."

http://seekingalpha.com/article/44699-gigamedia-limited-poised-for-outstanding-growth

"The exciting news is the future possibilities. But first, the core European online poker business Everest Poker had record results increased revenue 163% from a year earlier. What gets me excited is the Asian gaming side of the business is just getting started, with slower than expected revenue streams for the quarter and the Japanese games including Pachinko not fully rolling until early next year. Adding to the future possibilities, GIGM is teaming up with Electronic Arts (ERTS) to offer online versions of EA’s games to Gigamedia’s Asian customers.

GIGM is still a small, fast growing company. Revenues are under $200 million annually and market cap around $1 billion. I do not see any reason why this company cannot be a $1 billion revenue company soon. At a 50% growth rate, that number comes in less than 5 years. Gigamedia’s stock is highly volatile as short term traders push the price around. At this point I see any price pull back into the teens as a buying opportunity (until it cracks $30!)."

http://seekingalpha.com/article/54293-gigamedia-excellent-quarter-sparkling-future

PICK

likey likey

Market Cap:
1.11B.
Revenue:
149.99M.
Gross Profit:
70.96M.
Net Income:
38.11M.
A Billion people playing poker on your servers:
Priceless.

Strong market presence and 3Q.

Exponenitial growth in poker. Mahjong also growing steadily.

GIGM has run up recently and will do so again. I'm looking forward to their gaming expansion in Asia and the increased revenues.

On line gaming in China. Mah Jongg for the newly prosperous of Asia. This Taiwan based company has changed from a sleepy ISP to a cash generating powerhouse. Gaming sites benefit from network effects and GIGM is the place to go for on-line Mah Jongg and other games in China.

With the China sector knocked back some lately, this should be a good entry point to a rapidly growing company with a huge potential market.

Choppy performance. Despite the great results, B/S is somewhat inconsistent compared to peers. I expect accounting irregularities:(

long term hold

consistent record of earnings surprises

Show me the evidence it won't? Look at the Q3 call today again. 4Q will be insane due to the timing of their market!

I just reupped on this stock after the dip. Some fools post that GIGM is overvalued and part of the China bubble. The stock's had a huge run-up lately and there will probably continue to be a lot of volatility in the short term as investors sort this one out, which should provide plenty more good buying opportunities, but keep in mind that the PE and PEG ratios (28.10 and 0.73 at close today) are still very reasonable. Unlike some of the China stocks, this stock isn't trading at insane PE multiples, and the company's business units are diversified across regions.

A few strengths for fools to chew on:

1) The company's European poker site nearly doubled revenue year-over-year
2) 68 million subscriber base. Services in 15 languages
3) pay Mahjong came online in Q2 of this year. HUGE potential in China
4) The company is adding cell phone gambling services
5) A more stable regulatory environment than U.S. internet gambling businesses

GIGM is very likely to exceed earnings guidance in the coming quarters. I'd wait for another dip to buy in, but I think this company's a multi-bagger over the next five years.

The only reason why GIGM came down is an earnings multiple compression. Next year's earnings multiple came down from 25 to 16. Now the stock is very cheap, because EPS will probably grow by 60% or more in 2008 and the P/E is just 16. This growth estimate doesn't depend on anything, it naturally flows from the company's innovative businesses.
This therefore is a perfect time to buy and hold again!!!

Ka-Ching...!