Stock Picks (1st Edition)

[netfishmademerich]

1) The pick:  WGAT Worldgate Communications.  WGAT.

2) The story: Like trader567 said, since I can't control the exit, this is likely a crap shoot.  In tihs scenario, I'd pick something with a bit of a history, and although my timing isn't ideal since the stock has already begun reversing a serious downtrend and had already gone up over 40% in the last 2 sessions, the stock's recent history tells me there's probably another 100% or more rise to come, and this move will likely take a month to complete.  This company designs / manufactures a video phone that is exclusively distributed via. Motorolla.  The product is called the Motorola Ojo. You can see / purchase the product here:  http://www.amazon.com/gp/product/B00098175K/102-4752902-3713751?v=glance&n=172282&n=507846&s=electronics&v=glance

The stock has broken out with above average volume a downtrend started back in August.  The low point was an intraday $1.64, near the 52 week low during last Wednesday's session.  Since then the stock had shot up +20% per session each of the last 2 sessions.  The reason for this reversal?  There has not been any news announcements from the company but a similar move back in December '04 to January '05 where the stock moved from $2 to $6 was simply based on speculation that the Motorolla Ojo would be widely distributed.  That had shown to be a bit premature at the time, but I believe now the product is ready for the Christmas shopping season, and this is probably the reason behind the current move.  If this turns out to be the case, I can expect the stock will not stop south of $6 and hence a +100% move is in the cards.

3) The Chart:

[dwest718]

CYTO is my pick!

Some info from last earnings report (all from
http://biz.yahoo.com/prnews/051102/phw049.html?.v=20)

Company announces receipt of the 2005 Frost & Sullivan Technology Innovation Award for its contributions to the development of novel therapies incorporating PSMA for combating prostate cancer
Company remains on track for filing an investigational new drug application of its lead therapeutic product candidate for the treatment of hormone refractory prostate cancer in the first quarter of 2006

PRINCETON, N.J., Nov. 2 /PRNewswire-FirstCall/ -- Cytogen Corporation (Nasdaq: CYTO - News) today reported its consolidated financial results for the third quarter and nine months ended September 30, 2005.

FINANCIAL HIGHLIGHTS
    --  Total revenues for the third quarter of 2005 were $3.6 million
        compared to $3.3 million in the third quarter of 2004. For the nine
        months ended September 30, 2005, total revenues were $11.7 million
        compared to $10.8 million in the same period of 2004.
    --  Gross margin for the nine months ended September 30, 2005 improved to
        39% compared to 35% for the same period in 2004.
    --  Cytogen reported a net loss of $7.8 million, or $0.44 per basic and
        diluted share in the third quarter of 2005, compared to $5.6 million,
        or $0.36 per basic and diluted share, for the same period in 2004.
        For the nine months ended September 30, 2005, total net loss was
        $22.2 million, or $1.36 per basic and diluted share, compared to
        $14.3 million, or $0.99 per basic and diluted share, in the same
        period of 2004. The increase in net loss results primarily from the
        implementation of new marketing initiatives and expansion of the
        Company's sales force, which was substantially completed in January
        2005.

"We believe that we are pursuing the right commercial strategies to increase product sales within their current indications and the right clinical development strategies to realize their full potential," said Michael D. Becker, Cytogen's president and chief executive officer. "Our clinical development initiatives with QUADRAMET in combination with various potentially synergistic agents, PROSTASCINT for monitoring treatment response and image- guided applications, and our pipeline of product candidates targeting prostate-specific membrane antigen (PSMA) are all of great interest to key opinion leaders who see value in these innovative molecules. We look forward to reporting progress with these initiatives in the months ahead."

PRODUCT REVENUE
QUADRAMET
QUADRAMET is Cytogen's flagship product for the relief of pain due to metastatic bone disease arising from prostate, breast, multiple myeloma and other types of cancer. Sales of QUADRAMET were $2.0 million for the quarter ended September 30, 2005 compared to $1.9 million for the same period in 2004. For the nine months ended September 30, 2005, sales of QUADRAMET were $6.2 million compared to $5.4 million in the same period of 2004.
PROSTASCINT
Sales of PROSTASCINT kits, the first and only commercial monoclonal antibody-based agent that targets PSMA to image the extent and spread of prostate cancer, were $1.5 million for the quarter ended September 30, 2005 compared to $1.3 million in the same period of 2004. For the nine month periods ended September 30, 2005 and 2004, sales of PROSTASCINT were $5.3 million each, demonstrating a consistent demand for the product year-over- year.

Cytogen's strategy for increasing product sales is centered on key drivers of long-term growth for both QUADRAMET and PROSTASCINT. For QUADRAMET, these drivers include: (i) distinguishing the physical properties of QUADRAMET from first-generation agents within its class, (ii) empowering and marketing to key prescribing audiences, (iii) broadening palliative use within label beyond prostate cancer to include breast, lung, multiple myeloma, (iv) clinically evaluating the role of QUADRAMET in combination with other commonly used oncology agents, and (v) expanding clinical development to demonstrate the potential tumoricidal versus palliative attributes of QUADRAMET. For PROSTASCINT, these drivers include: (i) improving image quality through fusion technology, (ii) validating the antigen targeted by PROSTASCINT as an independent prognostic factor, (iii) the publication and presentation of outcomes data, (iv) clinical development of image-guided applications including brachytherapy, intensity modulated radiation therapy, surgery, and cryotherapy, and (v) expanding clinical development to demonstrate the potential for PROSTASCINT to both monitor response to cytotoxic therapies and image PSMA expression in other cancers.

COSTS AND EXPENSES
TOTAL OPERATING EXPENSES
Total operating expenses for the quarter ended September 30, 2005 were $11.5 million compared to $8.9 million for the same period in 2004. For the nine months ended September 30, 2005, total operating expenses were $34.2 million compared to $25.2 million in the same period of 2004.
COST OF PRODUCT REVENUE
Cost of product revenue for the quarters ended September 30, 2005 and September 30, 2004 were $2.4 million and $2.2 million, respectively. For the nine months ended September 30, 2005, cost of product revenue was $7.1 million compared to $7.0 million in the same period of 2004, and primarily reflects QUADRAMET and PROSTASCINT manufacturing costs, royalties paid by Cytogen on the Company's product sales, and the amortization of the up-front payment to Berlex in 2003 to reacquire the marketing rights to QUADRAMET.
SG&A EXPENSES
Selling, general and administrative expenses for the quarter ended September 30, 2005 were $6.7 million compared to $5.3 million for the same period in 2004. For the nine months ended September 30, 2005, total selling, general and administrative expenses were $20.5 million compared to $14.1 million in the same period of 2004. The increase in selling, general and administrative expenses is primarily driven by expanded investment for the commercial support of both QUADRAMET and PROSTASCINT, including the implementation of new marketing initiatives and expansion of the Company's sales force, which was substantially completed in January 2005.
R&D EXPENSES
Research and development expenses for the quarter ended September 30, 2005 were $1.7 million compared to $608,000 for the same period in 2004. For the nine months ended September 30, 2005, total research and development expenses were $3.8 million compared to $2.0 million in the same period of 2004. The increase in research and development expenses is primarily driven by new clinical development initiatives for both QUADRAMET and PROSTASCINT and a $500,000 charge in the second quarter of 2005 for a non-cash milestone payment related to the progress of PSMA development programs. In addition, research and development expenses include preclinical development costs associated with the Company's lead therapeutic product candidate incorporating the same 7E11.C5.3 monoclonal antibody utilized in PROSTASCINT linked to a therapeutic payload to deliver lethal doses of radiation to PSMA-expressing cells.


This stock has been beaten down constantly for the last year or so and finally looks to be turning around a little bit.  Stock looks to have bottomed with positive macd indications.  RSI has been saying this thing has been oversold up till this week.  Has a ways to go to get to strong resistance at 6 (it's at 3 now) and if it breaks that it'll quickly fill the gap to 12!... I'll take 400% how about you?  I think $6 by Dec. is very possible.  The only analyst on this stock upgraded recently to a target of $17 a share so I'm not alone. Plus earnings estimates have been slowly getting better and better.  Here are two charts for y'all to chew on.

[basonista]

1)   Stock Pick - KKD, Krispy Kreme Donuts

2)   Reason behind this pick
This is another stock that has been beaten down recently.  We all know the story: too rapid expansion, possible cooked books, SEC investigation, lawsuits, New York Fed inquiry, CEO search, etc, etc.  A company still has value, even one as poorly run as Kripsy Kreme.  KKD has reached a new all-time low and rebounded a little.  Could it be the bottom?  Could all the bad news be priced into the stock?  What I like most of all about this pick is the time of year.  Shoppers are already descending on the malls and shopping centers, picking up Christmas gifts for all their loved ones.  And what do shoppers do during those long, grueling, gift searching outings?  They stop to rest at one of the eateries.  And drink and eat.  I believe the fact that all the bad news is probably already in the stock and the fact that sales should pick up going into the Christmas season, makes KKD an excellent speculative play at this time.

[cumulina]

1) ENER is my pick.

Energy Conversion Devices, Inc. engages in the invention, engineering, development, and commercialization of materials, products, and production technology in the fields of alternative energy technology and information technology. The company also involves in research and development, and production of proprietary materials and products, as well as in designing and building production machinery. In addition, it offers Photovoltaics, which provides clean energy by converting sunlight into electricity. Further, the company, through a joint venture with Chevron Technology Ventures, provides nickel metal hydride batteries for various applications, including transportation, telecommunication, uninterruptible power supply, military, homeland security, stationary power, and other prismatic battery applications. Energy Conversion was co-founded by Stanford R. Ovshinsky and Iris M. Ovshinsky in 1960. The company is based in Rochester Hills, Michigan.

2) My pick had to be one of the alternative energy companies, and it was a close race between this and ESLR. (ESLR disqualified itself as my pick by doing extremely well friday.)
There is no way around alternative energy, we need it - and now more than ever as the natural rescourses seems to be running out.

ECD is not only relying on solar, but is a well diversified and growing company. I believe it has a really great future.

Looking at the charts, there can not be much doubt about where this is heading, it took a beating in October as did many other stock.

It shall be interesting to see what happens the day after this contest starts on the 7th! 

ECD Ovonics to Report First Quarter Fiscal 2006 Financial Results and Hold Conference Call and Webcast on November 8

[wgsick]

1. My pick is Ceradyne (CRDN).  Nazdaq Small Cap

2. This company develops, manufactures and markets advanced technical ceramic products and components for industrial, defense, consumer and microwave applications.  They have developed five new designs to meet a new government requirement for improved body armor for the defense department, all of which have been approved by the government.  Other products they manufacture are components for heavy-duty diesel truck engines, crucibles for the photovoltaic cell industry, ceramic radomes for the PAC-3 (Patriot Advanced Capability) and Arrow missile programs, ceramic components for the oil exploration industry, and translucent ceramic orthodontic brackets.

I'm but a "babe in the woods" when it comes to TA.  I have a premium service with Success Investor Toolbox.  This pick is based on data gathered from this service such as

Phase I score (> 5/x)
MGZacks score (> 3.25)
Market Guide score (> 2.5)
Volatility score (>2.0)
Avg Vol (>100,000 shrs)
And numerous other indicators.

Ceradyne meets or exceeds all of the indicators that I look for.

I am looking forward to reading feedback (on my pick) from you technicians, so I can continue my TA education, which only began in June on 3SOF.

3 Chart from Success Investor Toolbox

[sebfr]

1)   Stock Pick: DOC - Digital Angel AMEX 2.760

2)   Reason behind this pick:

Fundamentals :
Digital Angel Corporation. The Group's principal activities are development and commercialization of proprietary technologies. The Group operates in three segments: ANIMAL APPLICATIONS: segment develops, manufactures and markets radio, electronic and visual identification devices for the companion animal, livestock, laboratory animal, fish and wildlife markets worldwide. WIRELESS AND MONITORING: segment develops and markets advanced technology to gather location and local sensory data and to communicate that data to an operations center. GPS and RADIO COMMUNICATIONS: segment designs, manufacture and distributes intrinsically safe sounders (horn alarms) for industrial use and other electronic components. On 22-Jan-2004, the Group acquired OuterLink Corporation. On 19-Apr-2004 the Group discontinued Medical Systems segment.

News :
an undervalued stock when you see news !!

10/31/2005 8:02:07 AM
Digital Angel Corporation Announces 2005 Third Quarter, Nine-Month Results
Year Over Year Third Quarter Revenues Up 23% and Nine Months Up 31% Animal Applications Up 59% Over Last Year

10/31/2005 9:00:15 AM
DELRAY BEACH, Fla., Oct 31, 2005 (BUSINESS WIRE) -- Applied Digital (ADSX), a leading provider of identification and security technology, announced today that its wholly-owned subsidiary Thermo Life Energy Corp. has been awarded U.S. Patent No. 6,958,443, entitled "Low Power Thermoelectric Generator", by the U.S. Patent and Trademark Office

11/1/2005 7:00:02 AM
DELRAY BEACH, Fla., Nov 01, 2005 (BUSINESS WIRE) -- Applied Digital (ADSX), a leading provider of identification and security technology, today reported financial results for the third-quarter ended September 30, 2005. The Company's consolidated financial results include the balance sheets, operating results and cash flows of its majority-owned subsidiaries, Digital Angel Corporation (DOC) and InfoTech USA, Inc. (IFTH). ...

Technicals :
all indicators are green....
White marabuzu
Close above moving average (50)
+DI crosses over -DI and ADX < 15 -> THE signal...
ROC is positive ND ChaikinOscillator is positive
Ascending triangle breakout (RSI)
MACD is positive

3) Stock Chart:

Time Frame: 10 months
Indicators: Price, MACD, Bollinger bands, 50 day ma, trendlines, volume, RSI

Start: $2.760
Furure : we will see ??

[eliteG]

My Pick: ERI - Emrise Corporation
Website: http://www.emrise.com/

What they do: Emrise Corporation manufactures defense and aerospace electronic components and subsystems, and communications equipment.

How I searched: I have been focused on short term momentum picks but it wasn't always so  .  So I scanned for stocks in the Nasdaq,NYSE,Amex <$3 with an avg volume > 100,000 using stockcharts.com scan engine.  Skimming over the yearly charts I plucked the ones I liked onto a list.  I looked at their longer term charts(looking for support), looked at their outstanding shares & mkt(looking for a low number) and thats about it.

-----------

Why I picked ERI:  The T/A (This is not in order of signifigance)

Chart 1 - On this longterm view of ERI I saw 3 positive technical signs.  First the over-lying trend is up.  This increases my chances that the stock wil continue to go up because stocks tend to continue in the direction that they are going unless they meet an opposing force(Newton said something like that  ).  Secondly I drew that yellow line connecting tops(rejection points) and saw that width(time) to the line was decreasing.  Of course I don't consider this that important but wanted to point it out.  Thirdly I was most excited about the parabolic nature I think ERI's rise shows.  A parabolic function such as x^2 starts rising exponentionally quick and when I connected the bottoms of ERI(blue line) what I see is the initial stages of one before it goes ballistic.  Stocks have portrayed this in the past(not a new theory) and I believe ERI has it.



-------------------------

Chart 2 - I think this sorta makes it clearer as to what I'm talkin about up there.  This is what I see.



-------------------------

Chart 3 - Now we zoom to 1 year 1 month long.  What have we here?  William O'Neil would be skipping.  Willie is the dude behind the cup and handle pattern(wrote How To Make Money In Stocks).  This pattern shows support and can forecast strong upwards movement.



--------------------------

Chart 4 - Zooming in a final time to 6 months long.  Well looking at my chart it looks like I wrote down everything there.



-------------------------

So thats all my research into ERI right there.  I want everyone to know that in case they are thinking of buying in.  I hold no position and do not know if I will play it.  I will study it though.

Goodluck to everybody. 

[setravis]

1.)  Ticker:    Company Name:
     OSUR     Orasure Technologies Inc.
     Sector:  Healthcare    Industry:  Medical Equipment & Supplies

2.)  Reason behind the pick:  

     Earnings up last 3 quarters.
     Very good looking "Breakout" from the Ascending Triangle (Continuation)Pattern.
Fundamentally, they have several useful oral testing products and quarterly numbers are showing consistent improvement.Recently turned profitable. Lastly, the meeting with the FDA regarding their HIV take-home test may be a catalyst for the next big move.
Looks to be forming a Cup with Handle (Continuation) Pattern.

Support @ $10.79...10.30...9.93
Resistance @ $11.34...11.50...11.78
Recent CandleStick Analysis
Neutral

Technicals
Last Price Quote is:
4.85%above 13-day EMA
11.50%above 50-day EMA
MACD is Bullish
Stochastic is Bullish
RS Rating: 68 

Fundamentals
Earnings Expected on Nov 9

Key Data:
Market Cap (M): $499.07 
P/E Ratio: 204.11 
PEG Ratio: 2.16667 
Next Earnings: 11/09/2005
Last Analyst Rating: Hold

The NY Times reported that Federal drug regulators have agreed to consider allowing a OraSure Technologies to sell the first rapid, at-home AIDS test that would make testing for the virus about as easy and accessible as a pregnancy screen. The move could put to rest 18 years of controversy. "If we're going to win the war against AIDS, we need to make HIV testing as easy as pregnancy testing," said Dr. Freya Spielberg, a researcher in the Center for AIDS Research at the University of Washington.
The test, called OraQuick Advance, is made by OraSure Technologies Inc. of Bethlehem, Pa. It is already widely available in health clinics and doctor's offices, and the FDA is considering permitting it to be sold over the counter.


Company Profile:  

OraSure Technologies Inc.
220 East First Street
Bethlehem, PA 18015
Phone: 610-882-1820
Fax: 610-814-2937
Web Site: http://www.orasure.com

DETAILS  
Index Membership: N/A
Sector: Healthcare
Industry: Medical Instruments & Supplies
Full Time Employees: 194


BUSINESS SUMMARY  
OraSure Technologies, Inc. engages in the development, manufacture, and marketing of oral specimen collection devices. Its products include Q.E.D. Saliva Alcohol Test and Intercept, a laboratory-based oral fluid drug test; OraSure HIV-1 oral fluid specimen device, a collection device that collects oral fluid to test for antibodies to the HIV-1 virus; OraQuick Rapid HIV-1 antibody test, a point-of-care test to aid in the diagnosis of infection to HIV-1 using a fingerstick and venipuncture whole blood specimen; Toxicology kits for use in testing blood, urine, hair, oral fluid, sweat, and other forensic samples. The company also offers enzyme immunoassay test kits and oral fluid collection devices, which are used to perform risk assessment testing of life insurance applicants and screen for drugs of abuse, nicotine use, and therapeutic drugs, to insurance laboratory clients; OraSure, a set of MICRO-PLATE products to the blood fractionation market for testing of plasma and related products; Cryosurgery for treating various superficial benign skin lesions, including warts, actinic keratoses, seborrheic keratoses, skin tags, age spots, condyloma acuminate, and molluscum; and Histofreezer portable cryosurgical system for cryosurgery. The company sells its products in the United States and internationally to various clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians' offices, and commercial and industrial entities. OraSure Technologies is headquartered in Bethlehem, Pennsylvania.

[bw6458]

Stock Pick:  Avanir Pharmaceuticals  - AVN (yep that's right the sleeping dogs of all dogs)   

I can't do any of the tech analysis that you all provide... but I have followed AVN for years...

They are awaiting FDA decision on a NDA for Neurodex
New CEO was CFO of AGN.  He just bought 500,000 shares @ $3 and another PP recently done at $2.60.
Strong institutional support
I also realize it's up 25% since October but I hope by placing it delicately in this contest that indeed it will be the catalyst for it to double by years end.
Earnings for last quarter will come after contest ends but perhaps their will be pre-release excitement.




Avanir Pharmaceuticals
11388 Sorrento Valley Road
San Diego, CA 92121
Phone: 858-622-5200
Fax: 858-658-7447
Web Site: http://www.avanir.com

Sector: Healthcare
Industry: Drug Manufacturers - Other
Full Time Employees: 60

[thai626]

1)   Stock Pick
ASTM - Aastrom Biosciences Inc.

Aastrom Biosciences, Inc. (NasdaqSC: ASTM) is developing patient-specific products for the repair or regeneration of human tissues, utilizing the Company's proprietary adult stem cell technology.


2)   Reason behind this pick
ASTM is a great company with big potential in the near future.  Their technology uses a fascinating idea in that it uses a person's own stem cells (from bone marrow) to treat severe bone fractures, vascular diseases, jaw bone reconstruction as well as spine fusion.  It has many clinical trials actively going on in both US and in Europe.  Soon they will be opening a manufacturing site in Europe and hoping to rake in big bucks.  This company has forcasted that news will be released soon (clinical results, IND decision, etc.)  With the vote in congress coming in early January and the news releases that are inevitable, this company will soon soar pass every analysts price target of over $4.00.  Good luck to everyone!

3)   Stock Chart

[greatday8]

1. END - Endeavour International Corporation

2. Independent energy company established to find and develop oil and gas reserves in the North Sea. In less than a year, the company has established one of the industry's largest exploration portfolios in the United Kingdom and a base of production assets with exploratory potential in Norway.
During October,  Tejas Securities Group, Inc. and Ferris Baker Watts, Incorporated announced  that they have initiated stock coverage of Endeavour with a BUY rating.
Shares outstanding as of November 1, 2005 is 75,489,052.
The stock has corrected 2/3 of the rally from June to September and is setting at support of a short term lower trendline. May have little more down move but many technical indicators are at or near oversold levels, suggesting a rally or corrective move up is near.

3. Six month chart:

[Rip]

I will pick Abraxas Petroleum Corp. (ABP) for the following reasons:

Due to the short term nature of this contest I need a stock with a near term potential trigger event to get it moving. ABP has earnings coming out on Monday (regretably before the open instead of after the close) and the potential for news on drill results. Either of these could move the stock significantly if the news if positive.

Further it is in a sector (oil and gas) that has enough potential volatility to make it a winner.

Finally it has had a lot of upward momentum until recently and could continue its ascent.

Time will tell.

Good luck to all. (sorry but could not get the graph to paste)

[greatday8]

I will pick Abraxas Petroleum Corp. (ABP) for the following reasons:

Due to the short term nature of this contest I need a stock with a near term potential trigger event to get it moving. ABP has earnings coming out on Monday (regretably before the open instead of after the close) and the potential for news on drill results. Either of these could move the stock significantly if the news if positive.

Further it is in a sector (oil and gas) that has enough potential volatility to make it a winner.

Finally it has had a lot of upward momentum until recently and could continue its ascent.

Time will tell.

Good luck to all. (sorry but could not get the graph to paste)

Rip, your chart:

[AussieTrader]

Transmeta Corporation TMTA
Sector: Semiconductors

Why TMTA, well for a start I already have an open position on TMTA, and in fact it is a current 3Stocks open trade also, so for those reasons I must think it is going higher!! I like the way the chart is setting up for TMTA, previous quarter results were good and gave TMTA a lot of momentum helping to re-set a downtrend pattern. A period of consolidation on low volume bought the stock back to the middle of the bollinger bands (weekly chart) where in the past 2 weeks it has found support and rallied also coinciding with latest earnings report (due for release Tuesday). I think the market knows this quarter will not reach the levels of revenue from the prior quarter, I believe guidance and direction will set the tone for hopeful continuation, volume will flow one way or the other once Tuesday is done, so we will see.
I have 2 charts: Weekly shows resistance around the $2 level in the form of previous highs and the 200ema, that is a sticky area, removal of that though and $4 zone is open for attack. Volume will be key as usual. Daily chart has TMTA in a flag with indicators trending nicely, close support and less obvious resistance above.

Company Information

Transmeta Corporation. The Group's principal activities are to develop and distribute software-based microprocessors and additional hardware and software technologies for Mobile Internet Computers. These products are portable computing and communication devices that are compatible with PC software. The products also deliver the performance required to run standard PC and Internet applications and also offer long battery life. Crusoe microprocessors have been developed for lightweight notebook computers and wireless Internet access devices and other Internet appliances. The Crusoe microprocessors are suitable for a broad set of existing and emerging end markets where energy efficiency and x86 software compatibility are desirable. The Group's customers include Sharp, Fujitsu, Hewlett-Packard and Uniquest

[la-onda]

Hi,

1)

My pick for the contest is GIGM 

The reason for picking GIGM is the following:
On Sept. 29 / GigaMedia Limited announced the sale of all of its ownership interest in its land-based music distribution business to Nextbase International Limited, a company organized and existing under the laws of the British Virgin Islands. The sale was in effect immediately. The total sale price for GigaMedia's stake was US$5.15 million. The Company expects to record a one-time gain related to the transaction which will be mostly offset by operating losses in the music distribution business in the third quarter, resulting in a small aggregate net income contribution to GigaMedia of approximately US$130 thousand during the period. The sale will also increase GigaMedia's cash and cash equivalent balances. ''The music retail business was a legacy of the old Giga, a non-core operation,'' explained GigaMedia CEO Arthur Wang. ''The cornerstone of the new Giga is the high-growth online entertainment sector." ''Disposal of the land-based music retail business will free management resources to accelerate core business growth and the pace of strategic acquisitions,'' stated CEO Wang. GigaMedia acquired its 58.58% ownership in the music distribution business in 2002 as part of a diversification strategy of the old management team.

GigaMedia Limited announced on September 8/05 its fifth consecutive quarter of profitability, with second-quarter 2005 consolidated net income of $1.2 million, up 119 percent from the same period of 2004 and an increase of 20 percent over the first quarter of 2005. The increase in the Company's consolidated net profit was driven by strong performance in GigaMedia's entertainment software business, but limited by a loss in the Company's music distribution unit, which faced continuing operating pressures.

''The second quarter was solid: we delivered good earnings growth despite substantial losses in our music distribution business,'' stated Chief Executive Officer Arthur Wang. ''Moreover, we strengthened the foundation of the new GigaMedia: investing in our online entertainment software business, releasing new products and scaling up our platform.'' GigaMedia is a diversified provider of broadband and entertainment services, with headquarters in Taipei, Taiwan. Giga Media is a holding company and through several subsidiaries distributes recorded music, provide broadband Internet access, and develop software for online entertainment services, including online gaming and social networking.

Giga's core retail music business is operated through the subsidiary G-Music Limited, or G-Music. Through G-Music Giga operates Taiwan's two largest music store chains, Rose Records and Tachung Records. As of September 30, 2004, we operated a total of 46 stores. Our estimated market share of the physical retail music distribution industry in Taiwan in 2003 was between 35% and 45%.

IMO GIGM is now be able to focus on the PROFITABLE areas  provide broadband Internet access, and develop software for online entertainment services, including online gaming and social networking.

Last earnings:
http://biz.yahoo.com/prnews/050908/hkth001.html?.v=19

Estimated profit for this year is 0.08 $; with the focus on Software development (profit 1.4 Mio $) and Internet access (0.9 Mio $ profit I will estimate 0.16$ for 2006.

From TA point of view, GIGM should be also be positiv, EMA (9) has crossed the EMA (20) & (50); EMA (20) wil corssing EMA(50) soon (1.87 vs.1.88$)
Last GIGM stock price was at the top of the Bollinger Bands.

If somebody would like to give me feedback, please send me a personal message, always appreciated.

May the force be with us