|
DIVX (DIVX)
The more I read about Divx, the more interested I am in this stock as a speculative growth play. I suggest you all check it out. It recently dropped 10% after earnings, this might be able to get you in at a better price.
Things that have caught my attention:
PS3 is going to support DivX format right out of the box. Divx will probably see a licensing fee for every PS3 sold. Microsoft has said in the past that they will not support Divx for the 360 because of its tendancy to be used for piracy. But with this move from Sony, there have been rumors floating around that MS is planning on supporting the format afterall, resulting in more royalties for Divx.
Another thing that could be even bigger. As you may not know, the Divx format is the best video codec for size/quality. A few months ago they partnered up with Google. Then Google goes and buys Youtube, which is known for its giant library but lack of quality. This lack of quality makes Youtube's videos unsuitable for use on a television set. If Google brings Divx into the equation they will be able to get amazing quality and at the same time be able to stream videos onto Divx licensed DVD players and Televisions. This could all be part of Google's master plan of online video domination.
In my opinion, the future of television lies in the internet and Divx is positioned to be a leader in this new technology.
|
Linear Mode
