3SOF

GIGM is a seriously undervalued growth company as you can see on the rest of this thread and I'll continue holding it for the long term.

The more companies I see and I check the fundamentals the more I know GIGM is a true bargain.

EPS for the 3rd quarter were $0.034 per share. If we annualize this we get $0.136 in earnings per share, assuming no growth (and it's obvious there will be growth).

At current $2.69 stock price the earnings multiple is 19.78, where as growth in earnings from 2004 is 150%. If we also take into account the company has $1.1 a share in cash, we get to the simple conclusion that GIGM offers limited risk and huge upside potential.

I'll continue holding for the long term.

David

I think that "not so strong " stock performance of GIGM is due to slow revenews growth.
For instance Q2 was slower than Q1.  
May be I'm wrong.. 

Best,
Vova

Bought it today on pull-back ($2.60) exactly at its 10-DAY EMA

See chart

I'm with you Shawfund (2.62).  Looks like a decent day to buy some of our stocks.

Quote from: voova99 on December 09, 2005, 11:31:22 AM
David

I think that "not so strong " stock performance of GIGM is due to slow revenews growth.
For instance Q2 was slower than Q1.   
May be I'm wrong.. 

Best,
Vova

Yes, that's true, I held the stock when that earnings report came out and sold at a small loss. I believe that's because the company is changing from one sector to another, discontinuing low profit operations and investing in high growth operations like, for example, online gaming.

I read a current bullish comment from Michael about GIGM, but I can't find it at this point. I remember he said he liked the stock at this point, but unfortunately he missed the train. Probably he will buy on dips, like many value and growth investors, because GIGM is quite a unique growth story.

I'll continue holding for the long term.

Nothing new for GIGM today, both in technical and fundamental terms. I'll continue holding for the long term.

Nothing new on GIGM, the stock came down to support again and maybe it will close the gap at $2.51. I maintain my previous analysis:

Quote from: David Randolph on December 09, 2005, 07:46:10 AM
EPS for the 3rd quarter were $0.034 per share. If we annualize this we get $0.136 in earnings per share, assuming no growth (and it's obvious there will be growth).

At current $2.69 stock price the earnings multiple is 19.78, where as growth in earnings from 2004 is 150%. If we also take into account the company has $1.1 a share in cash, we get to the simple conclusion that GIGM offers limited risk and huge upside potential.

I'll continue holding for the long term.

Bought it this morning the second time at $2.52 the previous high.

QuoteNothing new on GIGM, the stock came down to support again and maybe it will close the gap at $2.51.

Well, it came down to close that gap and ended with a doji candlestick, which shows indecision. Indecision is welcome when breaking down an ascending trendline, because traders are really not sure about what they're doing.

I wish GIGM published 10-K reports. Anyway, I know this company's business and I believe it will thrive. I'll continue holding GIGM for the long term.

«Fourth, strategic acquisitions. The management team is currently conducting due diligence in respect of a very interesting acquisition opportunity in the online entertainment sector. If successful, management believes the acquisition will accelerate top and bottom-line growth in the short term and create significant long-term opportunities. We are excited about the opportunity and hope to announce a definitive deal within a few weeks.»

And they did it:


GigaMedia to Hold Investor Conference Call on December 19 to Discuss Acquisition of FunTown

Let's watch the webcast to know what impact will this acquisition have on top and bottom line and how much did it it cost.

I'll continue holding GIGM for the long term.

UP 18%.... News out!!

GigaMedia Buys World No. 1 Mahjong Site and Leading Asian Game Portal
http://biz.yahoo.com/prnews/051219/lnm007.html?.v=3

David

May you look at CDV? That company under heavy accumulation last month!
revenues are growing and Cap is only 32M. 

Best,
Vova

Quote from: voova99 on December 19, 2005, 01:21:32 PM
David

May you look at CDV? That company under heavy accumulation last month!
revenues are growing and Cap is only 32M. 

Best,
Vova

It looks interesting Vova, both from a technical and fundamental perspective. If the company could increase their net margin to between 5 and 10% it could move up 10 fold from current levels. Net margin is the key here, did management said something about it on the last conference call or the last 10-Q report?

Thanks Vova ! (I sent you a private message, if you can say something about this before 8 AM I might consider it to buy for the 3 Stocks on Fire Portfolio (though average volume is kind of low).

Going to our dear GIGM now. It deliver what it promised, what looks to be an outstanding acquisition:

GigaMedia Buys World No. 1 Mahjong Site and Leading Asian Game Portal

(please read the text for full details)

From this operation GIGM expects to increase its net income by $6.375M in 2006. Net income for GIGM in 2004 was $1M, and in 2005 about $4M, so you see there will be substantial EPS growth coming out of this transaction.

Price ($45M) seems ok and and they will request just $15M from investors. Dilution may not even occur, because GIGM did this: «Early redemption: Right to call the Note within the first 12 months from closing at a 5 percent annualized interest rate»

If everything goes as planned, I see GIGM with an earnings multiple of 10 for 2006. P/E of 10 and expected earnings growth of at least 50% year on year isn't right.

I think GIGM is severely undervalued in a fast growing industry, therefore I'll continue holding the stock for the long term.

$3.7 is the next target, and above that the sky is the limit.

David

"GigaMedia anticipates 20 percent to 30 percent growth in FunTown's business in 2006"


4mil. subscribers can't give faster growth?
Is that enough 20% in "fast growing online game industry"?   

May be WS waited for more substantial perspective..   

Best,
Vova