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

[Michael]

Michael,

Do you have a target price for this stock?
If not, when are you planning to sell? Only when you will notice it does not get higher anymore?

Thanks!
Ohad

Hi Ohad

No we do not have a target for GIGM. I have been struggling a bit on this but I haven't found a way to put a price target on the business that GIGM has build over the last 6 months. What is the value of FunCity's 4 millions members when GigaMedia introduces Mahjong for cash? What is the value of T2CN's 21 million players in China and their payment system?

For now we will let the stock run and protect our profit with a loose stop.

Saw 3SOV updated the stop to $ 7,70, which is about my previous TL.

My update and descions for today:
Today I decided to started to follow a new ascending TL, rising $ 0,40 a day standing at $ 9,68 today. I've put my stop just below that at $ 9,60).

I know it's steep but, I'm simply unwilling to let 25% profits run away. If it goes through my stop I trust I'll be able to pick up GIGM at a lower level.

Amarens

Hmmmm.... That was a very aggressive stop. It stands at 10.08 tomorrow so there is a very good chance/risk that you will be stopped out if you raise your stop according to the trend line. You could be right but I have to say that the times that I have sold because I hoped to buy lower I normally had to buy higher.

On another note. Among the trading team we have had a discussion about Chinese stocks. I am personally heavy invested in Chinese stocks and this is not a conscious decision but rather a result of the fact that from a technical and fundamental point of view Chinese stocks are in general performing extremely well. From 3SOF I just have to mention, CHID, AOB, XING, GIGM, SVA etc.  I think we have only seen the start of the Chinese boom. China has explosive growth, huge surplus on the trade balance, very cheap labor, an undervalued currency and the list could go on. I encourage all members to come up with other value Chinese play. Personally I love COGO, which we should have picked some weeks ago, but there are other stocks out there!

China has just relaxed the rules about Chinese investments abroad and this could add additional fuel to Chinese stocks quoted in US (Chinese citizens were previously not allowed to invest abroad)

[Amarens]

Michael,

I know it's an aggressive stop. Just want to secure profits  . Nothing wrong with that. B.t.w. set the stop just below the TL. Which I'll do again today. I've raised my stop from $ 9,60 to 9,80 (also just below yesterday's low). We will see.

Amarens

[netfishmademerich]

Support at $9.30, who'd have known???  After 2 days of consolidation this is only down ~9% from 52 week high close of $10.39

I think it may continue to consolidate another day... maybe just 1/2 a day, and then off to the races as Q1 earnings is coming.

[Michael]

Hi Amarens

Nothing wrong with profit taking and the steep ascending trend line was convincingly broken Friday. The underlying up trend is however still very much intact so we will follow our trading plan for GIGM and just update the stop to 8.0

[Amarens]

Well I took profits  Stop was at $ 9,80.

Decided to get back in. Worked at almost low of the day $ 9,32. The afterhours make it look like it was a good choice. Hope today proofs me right  .

Will go back to the first TL too. Standing at $ 8,55 today, rising $ 0,16 a day. I'll place my stop just below at $ 8,40

Amarens

[alien41]

GIGM just hit $10.00 Gotta love this baby! Keep the fires burning.

Alien

[netfishmademerich]

Haaaa... I was right.  Only 1/2 day it was down.  This one is going to the moon.  Talk about multi-bag... we first had this on the 3SOF portfolio when it was under $3.  If you ask me, we are going to see much much higher prices this year.  You just can't afford not to be in this stock, if you want descent returns on your potfolio.

I think it may continue to consolidate another day... maybe just 1/2 a day, and then off to the races as Q1 earnings is coming.

[AussieTrader]

GIGM keeps on doing what we all want it to. Strong support near the runaway (well I hope it will prove to be in that I think it WILL NOT fill) gap just below $9. I have moved my stop into the gap zone at $8.72. Sure looks like another run to $10.49 will take place prior to earnings, volume ramping nicely since May also. Can't fault the chart, now just a case of managing the risk with stops.

$10.49 needs to get taken out though, don't want it to bcome a glass ceiling here

Good luck

[Amarens]

Moved my stop up to $ 8,71 right on the TL rising $ 0,16 a day.

Amarens

[alien41]

So, earnings out in two days.  I have held onto this puppy since it was just $2.70.   I must admit I am a little nervous in regards to earnings.  Not that I don't see great things coming but people might just expect a little too much from them right now.  Was thinking a tight stop and hope for the best.  Any comments welcomed.

Alien

[rickjust]

So, earnings out in two days. I have held onto this puppy since it was just $2.70. I must admit I am a little nervous in regards to earnings. Not that I don't see great things coming but people might just expect a little too much from them right now. Was thinking a tight stop and hope for the best. Any comments welcomed.

Alien

nervous!!!!! you held from 270. thats awsome! even if it turned ugly and closed at  810 after earnings (which it won't) you still made 200percent on your money in 6 months . try getting that from a bank.
well played,
maxi

[alien41]

Maxi, appreciate the words.  Definetly my best trade.   Have had my share of mistakes.  I'm still learning and 3 Stocks on Fire has been a great resource. Just two more days till earnings. 

GLTA......Alien

[AussieTrader]

So, the stage is set, volume since May 1st increased nicely, also more volatility on daily basis. I am getting more aggresive on my stops. I have split 50:50 below congestion / trend lines.

I fully expect a great conf call with more positive guidance, but I want to protect my healthy profits at the same time.

I am considering a buy stop at $10.50 to add a new position also, but still thinking on that one.

[AussieTrader]

Results are awesome for sure, but there was little specific guidance for next quarter and some coment regarding seasonality affecting next qtr. This might lead to some profit taking as many with recent profit will want to lock in without specifics on guidance.

Looks  like it will open flat (ish) to yesterdays close after spiking big in the pre market and then selling off. I am not sure how this will play out (reaction wise to the release). Long term I think it's a winner no doubt.

Lets see, god luck

[netfishmademerich]

MAYBE some profit taking but should recover nicely IMO.  I didn't see any bad or red flags in the CC.