Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online gaming specialist GigaMedia
With that in mind, let's take a closer look at GigaMedia's business and see what CAPS investors are saying about the stock right now.
GigaMedia facts
Headquarters (Founded) |
Taipei, Taiwan (1997) |
Market Cap |
$175.55 million |
Industry |
Internet software and services |
Trailing-12-Month Revenue |
$183.6 million |
Management |
CEO Arthur Wang (since 2003) CFO Quincy Tang (since 2008) |
Trailing-12-Month Return on Equity |
12.98% |
Cash / Debt |
$92.8 million / $22.4 million |
Competitors |
NetEase.com
Giant Interactive Group
Shanda Interactive Entertainment |
CAPS Members Bullish on GIGM Also Bullish on |
Apple
Vale |
CAPS Members Bearish on GIGM Also Bearish on |
Allied Irish Banks |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 2,474 members who have rated GigaMedia believe the stock will outperform the S&P 500 going forward. These bulls include caddydlr and All-Star fmahnke, who is ranked in the top 5% of our community.
Just last week, caddydlr helped Fools see the bright side of GigaMedia's recent earnings letdown:
Good news in the financials is that there is still 96 mil in [cash and marketable securities] on hand! Everyone has talking about that but [without] statements we didn't know whether it was still there or not. ... Cash is king. Always has been. I am not selling.
In a pitch from one day later, fmahnke highlighted GigaMedia's alliance with Mangas Gaming as the best reason to take the bet:
Sure it was a weak financial report but that shouldn't be a surprise given the economy. [GigaMedia] just received and accepted an offer to sell 60% [of online gaming business] for a down payment of $100M, the down payment alone now represents 60% of the [GigaMedia's] total mkt cap ,which just doesn't make sense,
I'm not sure of the fair valuation of [GigaMedia], but I do know that their suite of games is (and customer list) is worth more than zero They have a strong balance sheet. ... This new partnership can lead to new customers and resumed growth.
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