GIGM $2.6 Up 27C...Huge GIGM jump in price/volume today after poker icon Doyle Brunson launched a $700 million cash bid (100% premium) for WPT Enterprises Inc. (NasdaqNM:WPTE - News), which owns the popular World Poker Tour television show.
GIGM is hot now because of the visibility gained by the highly successful PartyGaming IPO in London recently. The Poker world is going nuts.....literally.
Most of GIGM's profits the last two quarters came form its on-line gaming division. Its Everest Poker is now available in 11 languages and is No. 1 in a few of them according to recent industry reports.
There will be massive sector consolidation according to industry experts. The on-line gaming revenues are expected to go freomabout $8 Billion/year in 2005 to oevr $25 Billion in 2008!!!!
GIGM said in its recent 4Q 2004 CC that 1Q 2005, to be reported in a few days, will be profitable. They should know, 4Q was reported several weeks after 1Q 2005 already ended. This would mark the 3rd consecutive profitable quarter for GIGM.
GIGM financial performance is being fueled by its strong presence in the on-line gaming industry particularly in China and Latin America. You might recall last week's moster PartyGaming IPO in London. PartyGaming validates the entire sector as one of the fastest growing sectors in the world's economy. On-line gaming revenues will increase from $8 billion to over $25 billion in just 3 years...that's phenomenal growth...and GIGM is poised to grow with it.
GIGM HIGHLIGHTS:
* GIGM has recently reported several consecutive profitable quarters and 2004 was the first full year of profitability since the IPO.
Highlights of FY04 Results:
-- Consolidated revenues of US$99.8 million -- Consolidated EBITDA(1) US$9.1 million -- Consolidated net income US$1.7 million
-- Cash and short-term investments at year end of US$47.5 million. NO long-term debt.
Highlights of 4Q04 Results:
-- Consolidated revenues of US$26.6 million -- Consolidated EBITDA(1) of US$2.9 million -- Consolidated net income of US$1.2 million
* Its on-line gaming division contributed most of the profitability and it is expected to continue to grow exponentially.
* GIGM has a market cap of only $106 million and it is trading at low P/S of 1.1.
* The on-line gambling industry is one of the fastest growing industries in the world. PartiGaming, the world's biggest on-line gaimg company had one of the most succssful IPI's in the London exchange history last week, and the biggest in five years.
* GIGM Everest Poker is ranked among the leaders of on-line poker sites in several European, Asian, and Spanish/Portuguese-speaking countries
* GIGM's Everest Poker is ranked No. 1 in Portuguese, No. 2 in Spanish, and in the top 10 in 9 other languages including, English, German, Chinese, and Japanese according to www online casinocity com.
GIGM CEO CC COMMENTS (6/8/05)....
....we are very encouraged about our online entertainment subsidiary, Cambridge Entertainment Software, or CES. In the past year, CES has invested heavily in new gaming products, including both new variations of our traditional gaming offerings, as well as new product lines, such as multiparty poker, under the brand Everest Poker. I think most of you are familiar with the amazing success of online poker in North America. Our strategy is to become a first mover and market leader in Europe and Asia.
....we are happy to announce that Everest Poker is now available in native language offerings in 16 languages... and we are strongly focused on further penetrating the online gaming market through organic growth and....acquisition....
....we believe that the online gaming industry continues to offer significant growth potential. Our entertainment software unit is well-positioned to capitalize on the rapid growth of this market. Our online casino game software is one of the only end-to-end solutions that offers localization in up to 16 languages, and our poker product remains the only poker software available in up to 11 languages.
Online poker has surged in popularity as it pulls in a wider audience than traditional casino gambling -- often including women and younger players who may not have visited casinos. Better broadband access and the convenience of playing at home have also helped the boom.
Do your DD
AI
