Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online gaming company 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

$344.7 million


Internet Software and Services

Trailing-12-Month Revenue

$190.4 million


CEO Arthur Wang (since 2003)

CFO Quincy Tang (since 2008)

Compound Annual Revenue Growth (over last five years)



Shanda Interactive (NASDAQ:SNDA)

The9 Limited (NASDAQ:NCTY)

CAPS members bullish on GIGM also bullish on:



CAPS members bearish on GIGM also bearish on:

GameStop (NYSE:GME)


Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.

Over on CAPS, 98% of the 2,131 members who have rated GigaMedia believe the stock will outperform the S&P 500 going forward. These bulls include All-Star MattMcComb, who is ranked in the top 15% of our community, and jrwallst.

In March, MattMcComb described GigaMedia as a "profitable, cash-flow positive, debt-free company that's both growing and in an attractive industry." Our CAPS All-Star concludes: "High margins, cash is a significant part of its market cap, and online gaming ain't goin anywhere."

In a pitch from a couple of weeks ago, jrwallst expands on the stock's possible catalysts:

The company has a clean balance sheet, plenty of cash in relation to its total liabilities. Also, new U.S. legislation aimed at loosening up restrictions on real money gambling in the U.S, may provide new opportunities for [GigaMedia] to expand. Plus, other gaming companies are looking at [GigaMedia] as a possible acquisition. In addition, the game Luna, appears to be a fantastic game. ... Finally, low P/E compared to sector and earnings that have barely flinched during the economic downturn.

What do you think about GigaMedia, 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.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GigaMedia, Shanda, and Google are Motley Fool Rule Breakers recommendations. GigaMedia is also a choice of Global Gains, as is Garmin. Apple and GameStop are Stock Advisor selections. The Fool's disclosure policy always gets a perfect score.