Mystery stock up 50% in One Month
Note really a mystery, but Gigamedia Ltd. (GIGM: 3.22 -0.05 -1.53%) has increased in value 50% since its low in early August. The mystery is that in that time there has been very little written about the company outside of the little lists Motley Fool puts together on a daily basis. Forbes.com had a nice piece on 8/14 and I posted here and it was picked up by Seeking Alpha on 8/16.
The share price is now approaching the high it reached back in May, where is started it 1/3 decline on the same lack of news. I do believe this company gets lumped in with other China and/or Taiwan stocks when selling frenzies get started against these countries. The earning page at TradeKing.com show a grand total of 2 analysts giving recommendations on Gigamedia.
Looking at the company itself, you see a well run organization that is growing revenue and earnings in the 100% per year range. Business is strong in Europe and starting major expansions in Japan and the rest of Asia. The company’s primary business is on-line gambling and Asia is a ripe market for Gigamedia’s excellent products. The company trades at a trailing PE of 25.
Gigamedia was the first company chosen for my hypothetical 20 Stock Portfolio (now up to a sparkling 6 companies). This is a company I believe will keep its investors pretty happy for the next couple of years.
Note: I own shares in GIGM for my own account.
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