Small-Cap Spotlight: GigaMedia Worth the Gamble

In this week's Small-Cap Spotlight, Frank and Larsen dig into GigaMedia(GIGM Quote), a Taiwan-based provider of real money gaming software and online games.

Larsen: Short-Term Volatile; Long-Term Win

Don't get me wrong, the business of online gaming, particularly online gambling, is a far cry from a traditional industry. But U.S. investors seem overly skeptical toward GigaMedia, a company whose success relies heavily on online gambling, an activity that's illegal in this country.

When looking at GigaMedia, small-cap investors should set aside those ingrained prejudices and accept the fact that online gambling is far more accepted on an international scale, and therefore a company like GigaMedia, which operates across Asia and Europe, offers a unique investment opportunity. ...