Drink In These 5 Top Stocks

Our 130,000-strong CAPS community -- where members give the
thumbs-up or thumbs-down to some 5,300 stocks -- has earned its points
by seeking out the businesses it thinks will outperform the market.
Below we'll take a look at some of the top stocks in the CAPS universe
that you're talking about the most and whether you think they'll
continue their winning ways.

A tall drink of water

Playing games
online in your skivvies might not convey the same thrill as hurling
your lunch from the top of Beijing's Great Wheel -- a Ferris wheel that
is taller than the Bank of America Tower in Miami -- but that hasn't
stopped the market from running up the stocks of Chinese gaming
companies. Over the past month, GigaMedia, Giant Interactive (NYSE: GA), Shanda Interactive (Nasdaq: SNDA), and NetEase.com have all risen as much as 30%, while the S&P 500 has climbed a more timid 4% in that same period.

But GigaMedia hasn't escaped the recessionary pressures that have
plagued gaming and casino operators. Although earnings per share in the
most recent quarter were in line with analyst expectations at $0.15,
non-GAAP
net income was still 15% below last year's efforts, and revenues inched
up only 1%. But the outlook for its gaming activities was better as
Asian online gaming revenues were expected to grow 30% sequentially in
the first quarter.

With $96 million in the bank and no long-term debt, GigaMedia represents a tempting target for a takeover. Online poker site PartyGaming
is rumored to be in talks with GigaMedia, but some analysts remain
doubtful about such a pairing, despite GigaMedia's talks with banks to
arrange for acquisition-related financing. But poker operations
contributed a 17% increase in revenues for the Singapore-based gaming
house we call GigaMedia, while casino sites added a 39% jump.

Top-rated CAPS All-Star Trimalerus cuts right to the chase:

Online gaming is highly addictive and China is a big
growing market for this type of business. Even in our recession this
should outperform for the next 3 years or more.

It's true that GigaMedia has suggested intense European competition
will continue to pressure margins, but the Asian online gaming business
continues to see margin expansion. And that's a growth prospect you can
see without taking a vertigo-inducing theme park ride.

Gather 'round

With so many good opinions about today's top companies, why not grab a pointy paper cup from the dispenser and join us at the Motley Fool CAPS
water cooler, where your input can help guide other investors to stocks
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