Small-Cap Spotlight: DivX Dicey, but Possibly Doable

This week, Small-cap Spotlight focuses on DivX(DIVX Quote), 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.

Have a small-cap you'd like to see covered? Email Curzio and Kusick.

Kusick: Know the History

"The future is never clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values." -- Warren Buffet

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. ...