GigaMedia Up, Playtech Down
July 25, 2009 (CAP Newswire) – Although it isn’t always the best indicator of whether or not a company is actually performing well at the moment, there’s no denying that the share prices for companies basically set the standard on how they are regarded in the short-term. Even further, taken as a whole, an industry’s current status is usually gauged by the collective performance of its leading companies.
That being the case, there was disappointment at the recent reports that British gaming software company Playtech’s shares plummeted 22 percent this past week. According to Israeli business journal Globes Online, this performance was due primarily to the ten-year-old company’s recent joint venture with William Hill Online, which is experiencing a “slower than anticipated start”. (Click here to read more at Globes Online.)
On the other side of the coin, however, there’s GigaMedia Limited, the Taiwan-based Internet gaming software provider that operates Everest Poker, one of the world's biggest online poker rooms. Like Playtech, GigaMedia was founded in 1999. But unlike Playtech, GigaMedia is being called a “dream stock” by respected online investment center Motley Fool.
“Many investors are focusing on the long-term growth potential of GigaMedia's online gaming business, where it had 33% sequential revenue growth in the first quarter and has several new games coming online this year,” writes Motley Fool’s Dave Mock. “With the growing online gaming industry, strong cash balance, and no debt, many CAPS members are excited about the future potential of the company. Today, more than 98% of the 2,186 CAPS members rating GigaMedia expect it to outperform the broader market.”
The standards the website used to determine GigaMedia’s status as a “dream stock” are: (1) A market cap of at least $100 million; (2) A three-year revenue growth rate of at least 15%; (3) A price-to-earnings ratio of less than 25; and (4) A gross margin of at least 50%.
What does this mean for affiliates? Unless you're also an online gaming investor, very little, probably. But, when deciding what poker affiliate program to market, if longevity is a concern of yours, then GigaMedia-operated Everest Poker seems like a solid bet. Click here for more information on Everest’s affiliate program.