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

[Terliso]

Yup, GIGM looks really tough.
Technicals are setting up nicely, tomorrow is earnings conference call... so watch out

[Terliso]

That's a strong quarter for GIGM aussie (applause)

[basonista]

Am I missing something here?  Blowout quarter, good guidance, strong open, high volume breakout and now it's down for the day and going lower?  It couldn't just be the markets.  There are plenty of stocks moving up today.  What gives?

[ncham]

I'm always disappointed by how this stock trades. I almost shorted at 10.4, but i couldn't bring myself to do it with such a good report.

[SmartWrasse]

This stock moves on the whims of short termers and those who don't understand the company.  It will likely go parabolic with every major market turn.

[AussieTrader]

It was a strange old day for GIGM that's for sure. Some people bought in pre market at $11.30 and above (likewise some people off loaded those shares for a handy profit
GIGM couldn't maintain the pre market euphoria and from 08.00am onwards was on a downwards move.
You can't fault the company on its report and execution (it continues to deliver on it's promises). And for sure the future is looking good. I am not overly concerened on 1 day moves (unless they truly violate the technicals). In fact todays action reminds me of March 23rd when GIGM released guidance on their Q1 (40% up on Q4). This caused a huge 1 day volume surge with gap open, that euphoria then couldn't hold, the gap filled support held and it became the catalyst for GIGM to move from $5.50 to $10.78. My expectation is that todays results / news and guidance will also prove a catalyst for moves above the $10.78 zone into the mid teens.
Daily and weekly charts show GIGM despite todays topsy turvy moves remains above significant support.
Interesting to see what happens next.

[Terliso]

They are selling to the news...

[njshiva]

broke out above $8.95 resistance, not the time to sell,  it iooks like the time to buy IMHO

Atleast one thing I have learned, there are lots of people who get in for earnings rally and its always prudent to take some off the table on or before the earnings day.(specially if the market is not that upbeat) If the stock goes up there is nothing wrong you still have remaining shares to ride. Actually it also gives confirmation that your were right on your pick(what ever the theory may be) and you can in fact add on to your portforlio.

Again its not that easy to sell ANY stock .. we are so in love with the stocks we buy that we start developing this feelings of hope/belief ..etc . If it tanks we dont want to sell it on loss and if it starts moving up we wont sell it afraid  to miss the peak ...   

There are some great guys here at 3sof whose discipline I applaude.

[AussieTrader]

I am not overly concerened on 1 day moves (unless they truly violate the technicals). In fact todays action reminds me of March 23rd when GIGM released guidance on their Q1 (40% up on Q4). This caused a huge 1 day volume surge with gap open, that euphoria then couldn't hold, the gap filled support held and it became the catalyst for GIGM to move from $5.50 to $10.78. My expectation is that todays results / news and guidance will also prove a catalyst for moves above the $10.78 zone into the mid teens.

Well, technicals are getting a bashing unfortunately, my h&R reversal breakout has failed at the neckline for the moment and worse still GIGM is moving with the market and not on the merits of it's results / news. So, what's a guy to do?  There are a few levels of support $8.50 to $8.20 the 50sma $8.12, then the ascending 2006 support line around $7.70 or so and below that the 200 day in the $6 zone.

If it breaks $8.50 I will sell, if it rises anywhere above $9.00 I'll probably sell into that strength as unless it truly reverses on volume I think that it will fail again at that resistance point.

I am still bullish on GIGM, but I'm no massochist and will not hold on just because I am bullish, buisness risk drawdown is one thing, holding for the sake of it is another. I'll take my profit and wait for re-entry / accumulation in the support areas mentioned above.

[AussieTrader]

Sold on the break of $8.50 today as per my plan. I am not done with GIGM though as I think it still can be a big winner on the long term.

The 50sma has halted the slide for now and ascending 2006 support at $7.60 ish is the next test.

I am not in a hurry to get back in, this will need a catalyst to turn it round, just watching for support and signs of reversal.

Good Trading

[la-onda]

script from Q2 call:
http://www.gigamedia.com.tw/downloads/conference/2Q06%20Script-final.pdf


any TA comments ?

[AussieTrader]

Hey Oliver, how are things?

Market rallying some and pulling GIGM with it. From my perspective:

Daily chart watch for failure at the previously highlighted reverse H&S neckline which will push GIGM back to the 50sma / ascending 2006 support zone. Nice support shown at that area consistantly over the past few months as discussed before. Weekly chart shows nice accumulation point again at mid bollinger band area (which again coincides with 50sma zone). All in all approaching resistance from $8.90 to $9.50, which will take something more than current volume to push out the way.
I took a small position to keep on watch after the strength of the 50sma zone held. And will add if it deals with that resistance.
Good Trading

[ScottishTrader]

Hi guys,

I'll put a slightly different spin on it, though I also support aussie's analysis.  Yesterday's topping out at the H&S neckline suggests that we are approaching significant resistance.  I also see a large symmetric triangle breakout which occured during the run-up to earnings, and the subsequent sell-off tested this pattern as well as horizontal support around 8.00.  This triangle measures about 6.5 points, which would give a target of around $14.50.  Obviously, this would be a long term pattern target, and the immediate challenge is getting through the 8.90-9.30 resistance zone.  If the market keeps rallying, we may get a shot at it this time

[AussieTrader]

GIGM having a low volume lookey look at the neckline

[SmartWrasse]

GIGM needs that Mahjong deal and hopefully it will be a real goer, nudge, nudge...