Why Giant Interactive Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online gaming company Giant Interactive (UNKNOWN: GA.DL  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Giant Interactive and see what CAPS investors are saying about the stock right now.

Giant Interactive facts

 

 

Headquarters (founded)

Shanghai, China (2004)

Market Cap

$1.5 billion

Industry

Home entertainment software

Trailing-12-Month Revenue

$332.1 million

Management

Chairman/CEO Yu-Zhu Shi

CFO Jazy Zhang

Return on Equity (average, past 3 years)

26.6%

Cash/Debt

$374.1 million/$0

Dividend Yield

4.7%

Competitors

Changyou.com (NASDAQ: CYOU  )

Perfect World (NASDAQ: PWRD  )

Shanda Games (NASDAQ: GAME  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 613 members who have rated Giant Interactive believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, JoeArizona, succinctly summed up the bull case for our community:

With Chinese companies, it's always a crap shoot. But Giant Interactive seems to have a decent portfolio of games, and the Chinese economy doesn't appear to be in danger of cratering. That means lots of online gamers with disposable income looking for something to do online. Giant is going to do well in this environment.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Giant Interactive may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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