Talk:DivX, Inc. (DIVX)

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What do you think about this company? If you have general comments, add a reply to this section by clicking the [edit] link here ----->

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Any Opinions?

I just bought the stock at 22. I thought the company has some potential, especially as its video format is the most open and has clear advantages over MSFT's wma and Apple's iTunes format. The key for the company would be achieving wide adoption in the Video on Demand and large video download market. I am still trying to make sense of the boom and bust despite the lack of significant fundamental change. I would love to hear more opinions regarding the stock and its technologies.

I think the DivX technology is great. Site such as http://www.vcdquality and http://www.vcdrating.com have updates on the latest releases. Technology seems to work great, many DVD players are now offering DivX support for playback.

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I sold the stocks during the recent bloodbath, as it reached below my cut-loss threshold. I am considering to get back in, especially after the stock went below its last year's IPO price. But looking at blogs and message boards, people, Including our beloved Jim Cramer seem to be too concerned about earnings guidance and making too much of big deal out of earnings. I would look at DivX more as a "venture" type investing. I really think that the company should not be judged by current earnings as I think the main value is in its platform (think Adobe Flashor pdf for video). Its current royalty income from consumer electronic is nice, however, I think it should be seen a loss leader to get its platform in people's PC's, cell phones, and living room gadgets. I really think DivX IPO was too early, as its revenue model was still evolving, so it might be better off as a Private company staying out of public scrutiny (but I can understand VC's, founders' and everyone else's urge to cash out and retire in Hawai'i). I think the company could be a good fit as an acquisition target for some media related hardware or software technology makers (Google, Yahoo, Sony, etc), but it might also be a hard sell considering the company's current strategy of not granting exclusivity, mainly due to the company's open source root.

These articles (here and here)by Davis Freeberg featured in SeekingAlpha might be a bit outdated, but I think it describes Divx's business model in a more understandable manner than the company's 10k's. He even admits that it took him a while to understand the company's business model. I think the company can be a home run if it can achieve widespread adoption of its platform (I don't have hard numbers, but I think DivX might have market leadership in the Torrent and P2P segment), but it takes patience and a very high tolerance for risk. --khartand 10:23, 22 May 2007 (PDT)