I held this stock for almost 6 years!!!WOW in this day and age and the way this stock moved around it was painful. I think at these price levels everything is fully priced in except one thing. They do continue to improve the business(the mint deal will smooth quarters),EBITDA is growing nicely except small move up in interest rates should compress value, competitors are falling of a cliff( SPDC will go bankrupt most likely and customers will migrate to PFSW and Ebay is looking to sell GSIC division). After PFSWEB filed to raise $75 million I believe that is exactly what is in the works. The top 2 in the business will merge and Willougby will run the company. PFSWEB will probably get a move to the $20-22 area before it slowly goes back to $6-8 bucks. Love Willoughby but it really is priced to perfection and can hang here if SPDC collapses and they can pick off some big clients. Always loved providing everybody an honest opinion. I am onto a new one and it may be 5-6 years for that but check it out and tell me what you think...GIGM(been building a big position last 6 months at average price .95 cents..good luck all...Best , LOWL
I agree. The blackout period is still in effect since the closed out q1. They should be able to resume or do something after q1 is released. They should have a small window of opportunity until q2 is over. Looking forward to slow and steady progress on all fronts. Stock needs a push over $1 to get some eyeballs on it. I see garbage moving up and this company is not a penny stock but under the radar screen for most people. Should be an easy double without much news. I am long a big position and I am not pumping my book. I hold for years. Only other 2 big positions I held were PFSW for 5-6 years and BVSN which I threw in the towel since management have been terrible at communication. Even at a double I am not selling a single share. It has too much potential for a real turnaround story!!! Cash burn is no longer a factor as they are handling expenses really well.
Resident, I agree with you. This company is getting negative enterprise value for both the gaming business and the new cloud business. They should be able to scale the cloud business rather quickly to annual $10-30 million annual over next 2 years. In addition, the new game releases and social/gambling platform can get a US distribution deal and you never know if one of their games will go viral. Book value which really is now net cash on hand with small publicly traded investments(now approx. $5-6 million left) is approx. $1.40 per share with net cash of 25-30 percent higher than where the stock is trading. This stock should be sitting in the $1.50- $2.00 range today based on business as of today and with any improvements the sky is the limit.I wish company would give a conference call and some range of revenues for year to help shareholders see their vision. Blackout period should be over in 4-6 weeks to allow for insiders and company to buyback shares.
It would also be great for them to go on the road and pitch the story to get some institutions in the name.
No matter how you look at the results gigm has improved on all financial metrics.The bottom of the business cycle ended in 2014 and the hard work will payoff for shareholders for the next few years. They had a few technical problems in the release of games last quarter and the release of these new games in q1 and q2 should start to move the needle on the revenue side with little operating or capex increase on that front. They have continued to work towards us partnerships for new games and social / casino platform and their team I anticipate to close a few with all the chatter in multiple press releases .
While these reasons seem enough to warrant a big move up on their own, the cloud business grew fourfold in the quarter and there is no reason not to expect this to continue.
One thing is certain!! This stock will break 52 week highs within 6 weeks after release of q1 and insiders can finally resume buying shares. They have been in a blackout period for months. Get more shares now because we have all seen this play out before and 2 bucks is coming soon. Also, has anyone looked the price action in gamania lately? We could make a pretty penny off that investment also. Good luck all