| Gigamedia Runs Gigahigh on Tuesday’s Momentum Trading |  |
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| Tuesday, 13 November 2007 | |
Gigamedia Runs Gigahigh on Tuesday’s Momentum Trading(NAMC) – Entertainment software company Gigamedia Ltd (NASDAQ: GIGM) has been on the downslide since October 31, 2007.Dropping from a high over $24 per share to a low on November 12, 2007 in the mid $16 range. Now on Tuesday, in anticipation of Gigamedia’s earnings announcement on Wednesday morning the stock jumpy $4.67 to close at $21.10 on over 3.1 million shares traded. The average analyst estimate is 14 cents per share. I want investors to really look at this stock because the run on Tuesday was too strong for an anticipated earnings announcement for this particular company. Unless something extraordinary is happening with Gigamedia such as an acquisition or a merger of sorts then this run will probably be very short lived. I would not be shocked at all if Gigamedia slipped back into the mid teens possibly the $16 range once the true value is realized by investors. The stocks run was gradual on the way up from the $16 range back in September to its 52-week high of $25.42 earlier this month. But after slipping back to the $18 range a few days ago the stock shot up like a rocket. In my opinion it was all hype and momentum in Tuesday trading session, once this settles in, probably by the open tomorrow the stock may just shave off a few points as it goes to where it should be and that is in the $16 range. As I said, unless something really special is announced at 8am on Wednesday, this badboy doesn’t really deserve to be this high.
Louis Victor
NAMC Newswire Note: NAMC Worldwide provides Investment Banking consulting services to both publicly traded and privately held companies, everything from capital raising to mergers and acquisitions. Other areas of focus are Private Equity Capital Raising and Private Commodity Transactions.
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