GIGM - Sector: Technology---Industry: Multimedia & Graphics Software

[voova99]

Very good development:

http://www.digitimes.com/systems/a20060414A9057.html

Now GIGM will be able to attract people for playing MahJong from their home TV. 

[njshiva]

This one looks like a sure 2bagger this year 

[valueseeker]

Good to see they are working with Microsoft.

-----------------------------
First Taiwan-developed Xbox 360 game to launch in June

Kaddy Chung, Taipei; Adam Hwang, DigiTimes.com [Friday 14 April 2006]

FunTown, a Taiwanese producer of PC games, is expected to launch the Xbox 360 version of the traditional Chinese gambling game Mahjong in June of this year, the first among Taiwanese producers of Xbox 360 games, according to senior sales manager Grace Chou for Entertainment & Device Division of Microsoft Taiwan.

FunTown was acquired by GigaMedia, a Taiwanese provider of on-line games and Internet services, in December 2005.

The sales performance of the Xbox 360 in the Taiwan market since its launch on March 16 has been better than expected, said Chou. The supply shortage of Xbox 360 consoles following the launch has been solved but the supplies of a few accessory items are still insufficient, Chou indicated. The cumulative global sales volume of Xbox 360 consoles will hit the original target of 5.5 million units for the end of June this year, Chou predicts.

[Michael]

GIGM showed beautiful strength yesterday in an otherwise pretty grim market. It finished the day at a multiple year high. That is the kind of stocks we like 



It seems more an more investors are eyeing the potential in the FunTown acquisition. But that is not all it also seems like more and more players are enjoying the fun at FunTown. Since GIGM took over FunTown the traffic to the site has been on a steady rise:



No wonder Gigamedia said at the last CC that FunTown is exceeding their expectations!

[SmartWrasse]

Thanks again 3SoF 

This stock is what originally brought me to this site.  I think this was Michael's pick almost a year ago?

What do you guys think the impact of Giga's Mahjong on XBox will be?  It is not clear at all to me but sounds like good publicity.

[Michael]

You have a very good memory Wrasse!!

GIGM was my first pick for 3SOF at around 1.9.

The new management has shown the foresight and business shrewdness, which I like to see from a management team and I prefer to play on their team. At the CC they said that they are: "highly confident in our ability to deliver continued improvement in the company's 2005 financials and increasing shareholder value" .

I am quoting this because I think there is a lesson to be learned: The most important feature of any company is the management team. A fact that we too often forget - our rather we use the financial results as a proxy for the mangement team's efficiency. This is most often a good proxy but when we are looking at companies which is undergoing a turn-around or does not have a long track record financial results are not the best indicator.

Unfortunately - or fortunately for those of us who like to pick stocks - some of the best picks are stocks with a short track record (like ASPV) or stocks that are going through a turn-around (like GIGM).

[alien41]

GIGM just continues to Rock-n-Roll.    Takes the sting out of my position with GSHF.  Not down but certainly not as up as I would like to be. 

Michael, I was wondering if it might be a good idea to raise the stop on this one.  I don't see much downside but I sure wouldn't want to be caught off guard.

Alien 

[AussieTrader]

Setting stops and protecting profit is one of the more challenging aspects of trading especially when trying to stay with a position such as GIGM.
For my own GIGM position I have 3 trend lines on my daily chart; A longer term pre earn line, pre earns run / post earns line and most recently a new aggresive line that started after the $6 retest. Using those lines combined with 9ema,20ema and % of profit I want protected I calculate my stops.

Right now I have moved my stop to a 2 tier approach 1) 50% of position $7.05 (being below 2 trend lines and 9ema which has been good support on this run). 2) 50% of position at $6.78 being below 20ema and mid bolling band point. This means  I have approx 75% of profit protected and 25% at risk. 

Michael will have his 3SOV strategy update I am sure, this is just my own personal stop strategy based on my money management and financial approach.

Good luck

[netfishmademerich]

glad I kept all the shares I bought for the last edition of the stock contest.  Looking forward to double digits soon.  IMO this stock is "on fire".

[Amarens]

Hi Michael,

Let me start by saying I think 3SOF is a great place to be and I learn everyday  . My question comes from trying to understand. Every day I expect 3SOF to change the plan on GIGM to lock in profits. But it's not changed for a long time. It made me set up my own plan, b/c I think it's just crazy to let 60% of profits possibly run away.Don't know why I did not share earlier. Guess b/c I'm still not completely confident when it comes to TA 

Anyway the ascending TL (rising $ 0,10 a day) has been working great for me. Everyday I upgrade the stop. For today it stands at $ 7,50.

Curious to know your reasoning behind not upgrading the 3SOF stop. And...once again thanks for this great pick!

Amarens

[Michael]

Hi Amarens and Aussie,

At 3SOF we have very strict trading rules. One of them is that we don't change the trading plan during trading hours. In the case with stocks that are fundamentally as attractive as GIGM we prefer to have a very loose stop.

Now that doesn't mean that we will never raise the target and having in mind that the stock now is significantly higher than when we last posted an update it is probably time to revise the target.

[AussieTrader]

GIGA management keeping things nicely on track:

GigaMedia Secures Large China Base by Strategic Investment in Online Sports Game Leader T2CN Holding
PR Newswire - May 01, 2006 08:02
FunTown MahJong extends in China to 21 million registered users; 6.9 million active users in last 30 days


SHANGHAI, China, May 1, 2006 /PRNewswire-FirstCall via COMTEX/ -- GigaMedia Limited ("GigaMedia") (Nasdaq: GIGM) announced today a major expansion of its China market reach in an exclusive partnership with and strategic investment in online casual game company T2CN Holding Ltd. ("T2CN"), operator of the largest online sports game in China.

"Today Giga takes a major step forward in China," stated GigaMedia CEO Arthur Wang. "We bring our number one FunTown MahJong and other Asian games to the 21 million registered users of T2CN in China, an important expansion of our China market reach."

"The true pedigree of T2CN can be seen from their marketing partnership with premier international brands such as Coca-Cola and the NBA," stated GigaMedia CEO Wang. "We are proud to be a partner and co-owner of this exciting company."

Under the terms of the strategic partnership, GigaMedia will make an initial investment of US$15 million and obtain preferred shares convertible into a minority equity stake in T2CN, along with customary preferred share rights and protections. GigaMedia will also join the Board of T2CN.

GigaMedia and T2CN will together offer FunTown's existing games to the large T2CN user base on a revenue sharing arrangement. GigaMedia will become T2CN's exclusive provider for FunTown's existing games and preferred provider for games newly developed by GigaMedia.

The transaction is subject to customary closing conditions. Management expects the transaction to close in early May.

[berloga]

I believe GIGM may be at a short term resistance level at this point. This last announcement might have done a final kick to that level. The question is, will it trend up at a slow pace or correct to stay in the channel? Trying to post an image here...

[berloga]

Sorry, here is the chart. (attaching an image).

[SmartWrasse]

Like Eddie Money sang, "I think I'm in love!"

Big growth discussed about online gaming in China including discussion of big advertising dollars for a GIGM partner T2CN

http://en.ce.cn/Industries/IT/200603/13/t20060313_6349380.shtml