5-Star Stocks Poised to Pop: Giant Interactive
By
Brian D. Pacampara
April 28, 2009
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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online gaming company Giant Interactive (NYSE: GA) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Giant's business, and see what CAPS investors are saying about the stock right now.
Giant facts
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Headquarters (founded)
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Shanghai, China (2004)
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Market Cap
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$1.92 billion
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Industry
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Home entertainment software
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TTM Revenue
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$233.5 million
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Management
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Chairman/CEO Yu-Zhu Shi
CFO Eric He
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TTM Return on Equity
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19.1%
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Dividend Yield
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2.2%
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Competitors
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Sohu.com (Nasdaq: SOHU)
Activision Blizzard (Nasdaq: ATVI)
GigaMedia (Nasdaq: GIGM)
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CAPS members bullish on GA also bullish on:
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Apple (Nasdaq: AAPL)
General Electric (NYSE: GE)
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CAPS members bearish on GA also bearish on:
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Citigroup (NYSE: C)
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Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 516 of the 530 members who have rated Giant -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include accelerando and All-Star pauljs33.
Three weeks ago, accelerando touched on several of the stock's strong points:
[V]ery low pe given potential growth. lots of competitors but they have more solid mmog (massive multi-player on line game) on the way and loyal and growing following. … [In my humble opinion] risk/reward is extremely favorable.
In a pitch from last week, pauljs33 cites Giant's bigwig as reason to get in the game:
Enough cash that I truly believe they can weather the economic storm. The CEO of this company has been around the block several times. He knows both success AND failure. I'm guessing he didn't really like the taste of failure since he took a bit of time off to reflect afterward. Maybe that's why they have sooo much cash and so little debt on this go around. Mr. Shi has a loyal following of techies who are extremely bright (he is bright too, BTW). The down side is that this is a very competitive market. They seem to be sewing the fabric of a product base. One stitch at a time...... I'm in.
What do you think about Giant Interactive, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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