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

[netfishmademerich]

Looks like it's off to the races.

[alien41]

Lots of buying going on.   Trading at 10.55 right now.  Go GIGM

[alien41]

GIGM did alright.  Michael I was wondering what you thought of the conference call.

Alien

[la-onda]

15 sides conference call transcript (detailed information):

http://ir.giga.net.tw/downloads/conference/1Q06%20Script-final.pdf


Oliver

[AussieTrader]

I decided today to take some profit on GIGM and sold 50% of my holding at $10.20. Not because I perceive weakness in the chart, just wanted to balance my port and protect profits. I have remaining currently now at $9.45 Stop loss.

[netfishmademerich]

Ok... I shall fess up as well.  I never sold any.  GIGM was my pick for the last edition of the Stock Contest.  I bought additional 20000 shares at $4.54 in the hope of winning the contest.  The pick ended in the 4th place overall.  In the current edition of the contest I was going to pick it again, however by the time I got around to it Sunday night I see that someone else had already picked GIGM and so I stayed out of the competition instead, not realizing that I can still pick the stock.  I am happy that GIGM is currently in 2nd place and running very strong.  I still have all my shares and there was never a doubt in my mind on what it will do.

I really think this stock CAN be another NTRI, BOOM, RIMM, etc.  The potential is simply too enormous to ignore.  Don't give up your shares too easily.  It's all a game and there are way too many vultures out there that just want your shares on the cheap.  Don't let them have it that easily.  Take a look at the weekly chart,  we're far from a selling point.

[AussieTrader]

I really think this stock CAN be another NTRI, BOOM, RIMM, etc.  The potential is simply too enormous to ignore.  Don't give up your shares too easily.  It's all a game and there are way too many vultures out there that just want your shares on the cheap.  Don't let them have it that easily.  Take a look at the weekly chart,  we're far from a selling point.

I agree the upside potential is there and the weekly chart is super strong, that's why i still hold 50% of my investment and will consider re-entries on any move above what is currently resistance  in the $10.50 to $10.80 zone.
My sell is purely based on my own port mix and profit targets, banking 250% in 5 months is OK for me
Good luck all

[SmartWrasse]

I still think days like last thursday and friday were selling by private investor traders like 3SoF and buying by longer term investors that see the big potential here.  Deep pockets will want to support the pps to prevent technical damage and big selling.
Since I have held from the time picked by 3SoF (not 3SoValue), I have gone from 5% of my portfolio to 21% of my portfolio.  I know people would recommend a rebalance, but I find that hard to do.  Especially since I recently went to a large % cash that has no risk.  I suspect there will be a significant market slide this summer, but I have no idea how much it will effect GIGM pps.  I suspect the market will snap back in the winter and GIGM will  ROAR!

[Michael]

GIGM really showed strength on Friday. It started the day following the market down but after a good lunch break it seems the traders had made their mind up and took the stock back up under good volume. We might however see some consolidation around 10 before we take the next step up the ladder.

Earnings is always a critical point for a stock that is up 100% over 2 months. A lot of investors decide to take profit either before or after earnings so to see new money flowing in is a very good sign.

We are still trading well above the ascending trend line, which now stands at 8.75.

[la-onda]

GIGM: ThinkEquity Keeps @ Buy; Ups Tgt to $13 vs $11; Analyst Notes
Friday , May 12, 2006 09:33 ET

Issuer: GigaMedia Limited (NasdaqNM: GIGM)

Analyst Firm:  ThinkEquity Partners

Ratings Action: REITERATION
Current Rating: Buy
Target Price Action: INCREASE
Target Price: $13.00 (+18.18% from $11.00)
Analyst Comments: The firm points out that GigaMedia has made great progress in creating a comprehensive online entertainment destination platform focused on the high-growth markets in Asian and Europe. The company's record performance in Q1 is indicative to us of future trends and as such they are raising their estimates for FY06 and FY07. In addition to strong organic growth, they believe that there are number of near-term positive catalysts that will prove their current estimates conservative and warrant multiple expansion for the stock.

NEWS OUT 

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.

&

Co announced today the sale of its legacy ADSL Internet service provider 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 purchased the ADSL business from GigaMedia in an all cash transaction with total value of US$17.9 mln, including approximately $9.7 mln for the A.D.S.L. I.S.P. unit and approximately $8.2 mln 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. 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.

[la-onda]

GIGM: ThinkEquity Keeps @ Buy; Ups Tgt to $13 vs $11; Analyst Notes
Friday , May 12, 2006 09:33 ET

Issuer: GigaMedia Limited (NasdaqNM: GIGM)

Analyst Firm:  ThinkEquity Partners

Ratings Action: REITERATION
Current Rating: Buy
Target Price Action: INCREASE
Target Price: $13.00 (+18.18% from $11.00)
Analyst Comments: The firm points out that GigaMedia has made great progress in creating a comprehensive online entertainment destination platform focused on the high-growth markets in Asian and Europe. The company's record performance in Q1 is indicative to us of future trends and as such they are raising their estimates for FY06 and FY07. In addition to strong organic growth, they believe that there are number of near-term positive catalysts that will prove their current estimates conservative and warrant multiple expansion for the stock.

NEWS OUT  Evil Evil Evil Evil Evil Evil

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.

[Melf Elf]

GIGM: ThinkEquity Keeps @ Buy; Ups Tgt to $13 vs $11; Analyst Notes
Friday , May 12, 2006 09:33 ET

Oliver,

If GIGM rallies on the upgrade, watch how it reacts at the top of the Bearish Rising Wedge, which comes in today at 10.93, and rises $0.05/per day.  It could  go through the top of the pattern some, like TMTA did, but watch for signs of failure:  inability to hold an upside breakout, then a takeout of the bottom of the pattern.

As the pattern stands, it "could be" terminal on the upside, short-term:

1. GIGM has rallied parabolically 176% into the Rising Wedge since the double bottom at 3.90 without a correction.  Players might "sell into strength" on a rally to the top of the Rising Wedge.  A break of the pattern to the downside (depending on the point of the break) would measure to about the 8.27-8.40 gap.

2. The technicals are weakening.  The 13/21 RSIs completed a H&S Top yesterday.  If GIGM rallies on the upgrade, the 13 RSI likely will rally back to the broken neckline, then turn down again if GIGM can't sustain a rally above the Rising Wedge. (I'll show you the RSI chart next). 

3. The market has been rough lately.  If we get much more weakness, GIGM could break to the downside purely on profit-taking to protect the outstanding gains, and to offset losses in other stocks.

[Melf Elf]

13/21RSI

[Melf Elf]

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.

[Michael]

The press release this morning is better than I even had dared hoping for. Not only did GIGM get rid of their legacy business with low growth and low margins but they did that realizing a healthy profit. Under normal circumstances the good news would end here but this is GIGM and the press release continues:

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.

So let us just repeat this. They have sold a legacy business that has hold them back for a considerable once off profit and they expect that the revenue they generate from providing services to the buyer will largely be the same as the revenue of the business they have sold. I really love this management team