4-Star Stocks Poised to Pop: Giant Interactive

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online gaming company Giant Interactive (NYS: GA) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Giant Interactive and see what CAPS investors are saying about the stock right now.

Giant Interactive facts

Headquarters (founded)

Shanghai, China (2004)

Market Cap

$1.2 billion

Industry

Home entertainment software

Trailing-12-Month Revenue

$316.4 million

Management

Chairman/CEO Yu-Zhu Shi
CFO Jazy Zhang

Return on Equity (average, past 3 years)

17.5%

Cash/Debt

$317.8 million / $0

Competitors

Changyou.com (NAS: CYOU)
Perfect World (NAS: PWRD)
Shanda Games (NAS: GAME)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 577 members who have rated Giant Interactive believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Staka, weighed Giant Interactive's pros and cons for our community:

Positive:
-Cheap valuation relative to growth
-No debt, lots of cash used to buy back shares
-They are paying real hard cash dividends (which is rather unusual for pure Chinese frauds -> they are for real)

Negative:
-China business with all the usual (sometimes smaller) fraud risks especially because insiders don't own much of the company and are involved with many other companies at the same time which in China is often used as a construction to drain cash from a successful company.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Giant Interactive may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article 4-Star Stocks Poised to Pop: Giant Interactive originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners