UNDERVALUED STOCK PICK OF THE DAY - POTENTIAL BIG MOVER
Today's stock pick is so undervalued, it makes me feel like buying the whole damn company. Which company do you know grows revenues 41% this past year, has $50 million in revenues, is in a hyper-growth industry, an industry leader, has a market cap of only $50 Million, and trades at around $5?
Fortunately for us, we have found such a stock. The name of the company is called Giga Information Group (NM:GIGX). The company is one of the leading market research firms and strategic consulting firms in the Internet, Telecommunications and Computing arena.
When research analysts in major investment banks need facts, statistics and data on high-growth trends and areas, they turn to research firms such as Giga (where their reports and conferences fetch as high as $25,000).
So what makes this stock so special? A LUDICROUS VALUATION. GIGX competitors include newly minted IPO, Jupiter Communications (JPTR). While JPTR enjoys a hefty market cap of almost $500 million, it has sales of only $30 million, 40% less ($20 million) than GIGX.
Want more vindication? No problem. Forrester Research (FORR), another publicly traded research firm, has a market cap north of $600 million. Granted the company is far larger than GIGX, having annual revenues of $75 million, but GIGX should not be trading only 8% of FORR market value.
Consider this: APLN, the baby of the group, generating paltry revenues of only $6 million, trades at a market cap fo $130 million. GIGX, having over 8x the amount of revenues APLN has trades at a ludicrous $50 million market cap.
If GIGX would only reach up to APLN market cap, which IMHO is still undervalued, would be a 160% return from current levels, or $13.
Respective links:
Yahoo! profiles on GIGX, JPTR, FORR, APLN & MMXI
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
GIGX Homepage:
gigaweb.com
BTW, GIGX was started by Gideon Gartner, the founder of The Gartner Group (IT).
Nick Stalin |
