Small-Cap Spotlight: DivX Dicey, but Possibly Doable
This week, Small-cap Spotlight focuses on DivX (DIVX), the video technology licensing company whose shares have taken a rollercoaster ride since going public in September 2006.
The stock rallied off its 52-week low last week when the company posted third-quarter earnings and revenue that beat Wall Street expectations. But is now the time to jump in? Frank and Larsen examine the complicated story of DivX and what the future holds for investors.
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Kusick: Know the History
When I started to work on DivX, this quote leapt to mind. Fortunately, we're at the time now when uncertainty is perhaps at its highest for the company, and so investors have the opportunity to pick up shares of a company that could end up as the standard in digital video used on PCs, TVs, cell phones, and anything else with a screen.Of course, the problem lies with the pair of 800-pound gorillas standing in DivX's way, namely Apple (AAPL) and Adobe (ADBE). But this is Small-Cap Spotlight, and DivX, with it's $600 million market cap, stands in a unique and definitely uncertain position to carve out its own niche in the realm of high-quality, transferrable digital video.
The Lowdown on DivX
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