Opinion on  DivX Inc. (DIVX)     Sector: Technology  >  Industry: Software & Programming
I like the company's potential

Most of the company's value potential is in the on demand video space, and it's not reflected fully in the P&L yet.  So I am not really concerned about PE or if the company meets its earnings target or not.  Yes, MSFT and apple is in the space, but I think there's a space for open source based solution like DivX.  I think the stock looks cheap, but of course I could be wrong and the stock keeps getting battered.  If it really gets cheap, I think the company makes a good takeover target.  I see device makers/consumer electronics, Google, or even cable/broadband/cell technology operators, or anyone needing solution to deliver high quality video/audio (over IP) or other pipes could be interested in acquiring the company.

Most of the company's value potential is in the on demand video space, and it's not reflected fully in the P&L yet.  i am thinking of it more like a "venture" investment.  So I am not really concerned about PE or if the company meets its earnings target or not.  Yes, MSFT and apple is in the space, but I think there's a space for open source based solution like DivX.  I think the stock looks cheap, but of course I could be wrong and the stock keeps getting battered.  If it really gets cheap, I think the company makes a good takeover target.  I see device makers/consumer electronics, Google, or even cable/broadband/cell technology operators, or anyone needing solution to deliver high quality video/audio (over IP) or other pipes could be interested in acquiring the company.