3SOF

MIA
The forgotten GIGM Thread...The Original
Started by the One and Only....."EliteG".

GigaMedia Q1 Net Profit Up 210%: Best-Ever Quarterly Performance
Thursday May 11, 8:01 am ET

Technicals
Last Price Quote is:
3.60%above 13-day EMA
32.22%above 50-day EMA
RS Rating: 2 

Fundamentals
Key Data:
Market Cap (M): $520.90 
P/E Ratio: 80.28 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Press Release Source: GigaMedia Limited


GigaMedia Sells ADSL Business; One-Time Gain Expected
Tuesday May 16, 6:02 am ET 
New Giga Sharpens Focus on High-Margin Online Entertainment Business


TAIPEI, Taiwan, May 16 /Xinhua-PRNewswire-FirstCall/ -- GigaMedia Limited ("GigaMedia" or the "Company") (Nasdaq: GIGM - News) announced today the sale of its legacy ADSL Internet service provider ("ISP") business as part of its ongoing restructuring to focus on the high-margin, high-growth online entertainment sector.


Webs-TV Digital International Corporation, a Taiwan digital content provider ("Webs-TV") purchased the ADSL business from GigaMedia in an all cash transaction with total value of US$17.9 million, including approximately $9.7 million for the ADSL ISP unit and approximately $8.2 million in fees for bandwidth, consulting and other support services payable over a defined transition period.

The sale has immediate effect. GigaMedia expects to record a significant one-time gain in the second quarter as a result of the transaction.

"The ADSL business was a non-core legacy of the old Giga," explained GigaMedia CEO Arthur Wang. "Today we reaffirm our commitment to build the leading Asian online entertainment company."

Webs-TV's purchase includes GigaMedia's approximate 62,000 ADSL subscribers, certain fixed assets and the rights to use Giga's ADSL brand for a limited period of time.

GigaMedia will provide bandwidth, consulting and other support services to Webs-TV to facilitate the transition of the operations of the ADSL ISP business.

Through the end of 2006, the Company expects that revenues generated from the provision of such services will largely offset the decline in broadband ISP revenues resulting from this sale.

Today's sale does not affect Giga's consumer cable modem and corporate ISP businesses.

About GigaMedia

GigaMedia Limited (Singapore registration number: 199905474H) is a major provider of online entertainment software and services. Through its subsidiary Cambridge Entertainment Software Limited, GigaMedia develops software for online entertainment services, including the global online gaming market. GigaMedia's FunTown game portal is a leading Asian casual game portal and the world's largest online MahJong game site in terms of revenue. GigaMedia also operates a broadband ISP providing Internet access services to consumer and corporate subscribers in Taiwan. More information on GigaMedia can be obtained at www.gigamedia.com.tw .

The statements included above and elsewhere in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. GigaMedia cautions readers that forward-looking statements are based on the Company's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to certain factors that could cause actual results to vary can be found in GigaMedia's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission in June 2005.


    For further information contact:

     Brad Miller
     Investor Relations Director
     Tel:   +886-2-3518-1107
     Email: [email protected]
--------------------------------------------------------------------------------
Source: GigaMedia Limited

I am interested in going long on GIGM but brought at 10.

After seeing 1Q profits were tripled, I expected the price to rocket, but it really hasn't. Has a lot of this already been priced into the stock?

Also, what are your suggestions on going LONG?

hi,
please try the search functionality, there are alreday GIGM boards existing

Quote from: Melf Elf on May 16, 2006, 03:39:10 PM
GIGM looks a bit vulnerable in that Bearish Rising Wedge I posted this morning. They tend to "throw the baby out with the bathwather" in a general market Smackdown like we're experiencing, so GIGM could take a hit along with everything else. 

GIGM rallied to 10.30 in the early going today.  It's back to UNCH, at 9.85.  MACD likely will cross below its signal line today, so that's at least another caution (along with the H&S Top in the 13/21 RSIs).

Might not hurt to protect some profits here.

Shorted GIGM today at 10.19.  Stop: 10.61, two pennies above the May 12 high.  Risk: a loss of 4.1%

I shorted this as a day trade, but held onto it when GIGM closed back below the Bearish Rising Wedge (not show on this chart...don't have today's data).

Reason for the short:

1. The Bearish Rising Wedge. 

GIGM broke below it on an intraday basis on Tuesday, and closed below it yesterday by about one penny.  This morning, GIGM rallied to 10.27, three cents below Tuesday's high of 10.30 (the day it broke the Bearish Rising Wedge), then started to fade.

2. We got the MACD cross below its signal line  that I mentioned, on Tuesday (see chart above).

3. We've got a H&S Top in the 13/21 RSIs (see chart above)

4. GIGM hasn't responded to the "good news" the morning of May 16, about selling the ADSL business.

Quote from: setravis on April 02, 2006, 03:59:04 PM
I fail to understand...
I counted 9 different threads started on this stock, "and a new one today".

setravis,

My apologies.  I read your post yesterday and went back a bit, and found this quote.  I didn't realize that this thread even existed, yet it has a lot of posts!

I've always posted in the GIGM:My Pick folder, which is about 3 times more active than this folder, and recently, I responded to Oliver's post on GIGM.  I posted in there just now for easy reference, since I posted several charts there this week.

Again, I'm sorry for any confusion.  I understand your frustration with multiple folders.  Hope that you're having a great time on your vacation!

Trying to short GIGM but I'm always getting this I could have shorted it last monday @ $10.42
What is ur broker Melf?

SECURITY NOT AVAILABLE The security you are attempting to sell short is currently unavailable. Your order cannot be accepted at this time. If you have any questions, please contact an Account Officer at 1-800-934-4448.

Quote from: Terliso on May 19, 2006, 12:18:07 AM
Trying to short GIGM but I'm always getting this I could have shorted it last monday @ $10.42
What is ur broker Melf?

SECURITY NOT AVAILABLE The security you are attempting to sell short is currently unavailable. Your order cannot be accepted at this time. If you have any questions, please contact an Account Officer at 1-800-934-4448.

When I get that Terliso I just call the broker and they try to obtain shares for me.. but in my opinion with a mkt bounce/news tomorrow.. GIGM is ready for a powerful squeeze rally(straight to 15).. be cautious guys.   

Quote from: eliteG on May 19, 2006, 01:08:21 AM
When I get that Terliso I just call the broker and they try to obtain shares for me..

Thanks G, I will try to do that

Quote from: eliteG on May 19, 2006, 01:08:21 AM
but in my opinion with a mkt bounce/news tomorrow.. GIGM is ready for a powerful squeeze rally(straight to 15).. be cautious guys.   

I hope you are right that the market will bounce tomorrow.
Right now Nasdaq is sitting @ support from the Ascending Triangle breakout that happened during October of 2005 & gave back all its gains in just 15 sessions from that breakout... As I see it Nasdaq is very weak

Quote from: Terliso on May 19, 2006, 12:18:07 AM
Trying to short GIGM but I'm always getting this I could have shorted it last monday @ $10.42
What is ur broker Melf?

SECURITY NOT AVAILABLE The security you are attempting to sell short is currently unavailable. Your order cannot be accepted at this time. If you have any questions, please contact an Account Officer at 1-800-934-4448.

Alister,

I get that message a lot from both brokers that use: Scottrade and TDAmeritrade.  Sometimes, later on, shares are available, so try your order again.  Or, you can call them, as G. suggested.

Quote from: eliteG on May 19, 2006, 01:08:21 AM
but in my opinion with a mkt bounce/news tomorrow.. GIGM is ready for a powerful squeeze rally(straight to 15).. be cautious guys.

Thanks, G.   Just a trade on the Wedge break and weak short-term technicals.    I planned to stop it out for a 4% loss, barring a gap up, but I'm not going to give it that much room.

Initially, I thought that GIGM would rally to the top of the Bearish Rising Wedge on that  analyst upgrade that Oliver mentioned, or on the ADSL sale.  Instead:

1. Tuesday's rally fizzled at 10.30.

2. Wednesday it closed below the Bearish Rising Wedge

3. Thursday, another rally to 10.27 that fizzled, with another close below the wedge.

The bottom of the wedge comes in today at 10.1975, right where I shorted it.  A print above that puts GIGM back inside the wedge.  If it goes through 10.27-10.30 where the two rallies fizzled, looking strong, I'll cover well below my 10.61 planned stop.

Quote from: Melf Elf on May 19, 2006, 05:46:05 AM
If it goes through 10.27-10.30 where the two rallies fizzled, looking strong, I'll cover well below my 10.61 planned stop.

Another strong reason for covering strength above 10-27-10.30 is that, while the short-term 13/21 RSIs put in a Bearish H&S Top (see that chart posted earlier this week), the more intermediate-term 34/55 RSIs have come into Bullish Synchronicity.

Yesterday's high was 10.27, so 10.27 becomes a "buy pivot," meaning that a print of 10.28 is a technical buy signal from the 34/55RSI indicator.  As with any indicator, we have to decide whether or not we want to take the signal.

In this case, I won't buy it because I don't like the pattern, but GIGM easily could rally back to the top of the wedge, or beyond it, like TMTA and GEMS, so I'll cover strength through the 10.27-10.30 area.  My entry short was based on the fact GIGM broke below the pattern.  I don't want to get squeezed to the top of the pattern.

Bearish Rising Wedges can be trick, and difficult to play. (I'll show you GEMS next). 

GEMS - Bearish Rising Wedge example.

Quote from: Melf Elf on May 18, 2006, 06:01:22 PM
Shorted GIGM today at 10.19.  Stop: 10.61, two pennies above the May 12 high.  Risk: a loss of 4.1%

Covered ½ my GIGM short at 9.15.  Gain: 10.2%

Whew...that came down fast this morning!

nice trade melf... I screwed up and bought 1k more at 9.14 thinking it was going to hit below 9. Im doing good now though 9.16

I see string supprt at 9.... after thatit should cut like butter:P

Still shirt.. initiated short at $9.78

Cheers....

TMTA/GIGM.. The rasing wedge is beginning to be a godd friend of mine...

Thanks MELF....................

B