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 (NASDAQ:GIGM) has earned a coveted five-star ranking.

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


Internet software and services

Trailing-12-Month Revenue

$183.6 million


CEO Arthur Wang (since 2003)

CFO Quincy Tang (since 2008)

Trailing-12-Month Return on Equity


Cash / Debt

$92.8 million / $22.4 million

Competitors (NASDAQ:NTES)

Giant Interactive Group (NYSE:GA)

Shanda Interactive Entertainment (NASDAQ:SNDA)

CAPS Members Bullish on GIGM Also Bullish on



CAPS Members Bearish on GIGM Also Bearish on

Allied Irish Banks (NYSE:AIB)

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.

What do you think about GigaMedia, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. and Shanda Interactive are Motley Fool Rule Breakers picks. Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.