3SOF

High demand technology.......

Interesting news today...........Not sure how the market will react on this, but she sure traded nicely today..............

Press Release Source: On2 Technologies, Inc.


On2 Technologies Announces Acquisition of Hantro Products, a Leader in Embedded Video Technology
Monday May 21, 5:04 pm ET


TARRYTOWN, N.Y. and OULU, Finland, May 21 /PRNewswire-FirstCall/ -- On2 Technologies, Inc. (Amex: ONT - News), a leader in video compression software and solutions, announced today that it has entered into a definitive agreement to acquire Finland-based Hantro Products Oy, a market-leading provider of video technology for mobile devices. The acquisition is intended to accelerate the deployment of On2's technology on semiconductor chipsets that power mobile and embedded devices and to further On2's strategy for establishing a leadership position in the distribution and consumption of video on all three major device platforms used by consumers: PCs, mobile/portable devices and television.
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Hantro provides optimized video compression implementations for mobile, digital consumer-electronics and IPTV devices. The company's customers include Nokia, Freescale, LSI, Vimicro, Sanyo and over 20 other leading global device and semiconductor manufacturers. Hantro's technology has been implemented on more than 200 million devices to date and in mobile phones produced by 5 of the top 6 handset manufacturers. Hantro is recognized as the market leader in wireless video intellectual property as measured in revenue, number of shipped devices, and number of customers.

Under the terms of the agreement, On2 will acquire Hantro in a share exchange directly with the holders of all of Hantro's equity securities for a combination of cash and shares of On2's common stock, par value $.01 per share. Immediately after the closing, the Hantro stockholders would own approximately 12% of the combined company on a pro forma basis, based on On2's closing share price of $3.38 on May 18, 2007, and Hantro would become a wholly-owned subsidiary of On2.

The cash component of the acquisition price is approximately $6,800,000. If the volume-weighted average price for shares of On2 for the 10 trading days prior to closing is between $1.50 and $2.50 per share, the total value of the shares to be issued at the closing will equal $45,000,000 less the cash component. If the 10-day volume-weighted average share price prior to closing is $1.50 or less, the Company will pay the cash component and issue approximately 25,440,000 shares. If the 10-day volume-weighted average share price prior to closing is $2.50 per share or more, the Company will pay the cash component and issue approximately 15,300,000 shares. The number of On2 shares to be issued at closing is subject to adjustment, based on Hantro's stockholders' equity as of the date of the closing. Based on On2's closing share price of $3.38 on May 18, 2007, the total value of the acquisition at closing, before any adjustments, would be approximately $58,400,000. After giving effect to contingent consideration of up to an additional 12.5 million On2 shares based on the level of 2007 revenues from Hantro's business lines, ownership of the combined company by Hantro's shareholders could be a maximum of approximately 19% on a pro forma basis. Hantro's balance sheet as of March 31, 2007 includes approximately $4,900,000 of debt owed to Finnish financial institutions and governmental agencies. Hantro expects to generate revenues of between Euro6,000,000 and Euro9,000,000 (approximately $8,100,000 and $12,200,000) on an annualized basis for 2007, determined according to U.S. generally accepted accounting principles. On2 is currently unable to provide GAAP estimates on future earnings. On2 nevertheless anticipates that the transaction will produce break-even to slightly accretive results in 2008 on a non-GAAP basis.

Alot of action this morning, buyout rumor starting to circle.............


http://www.ft.com/cms/s/d5269c32-08b3-11dc-b11e-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html



On2 Technologies an Adobe takeout target, sources say
By Jonathan Marino and Homa Zaryouni in New York

Published: May 22 2007 23:55 | Last updated: May 22 2007 23:55


Please email [email protected] or call EMEA: + 44 (0)20 7059 6105 Americas: +1 212 686-5277 Asia-Pacific: +852 2158 9730 for further information on mergermarket and how to receive more articles like the one below.
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On2 Technologies, the listed, New York-based video compression software developer, is a potential takeout target for larger software companies, according to a source familiar with the firm and an insider.

Adobe, the listed California-based software company, and AOL the listed Virginia-based internet company, Skype Technologies, the UK-based company owned by California-based eBay, could all take out On2, a source familiar with the company said.

An Adobe takeover of On2 has been speculation for some time, the insider said. "We do from time to time hear from third parties that a company is interested in On2," the insider added.

On2 has USD 60m in stock it will use for investing and acquiring, the insider said prior to the company's 21 May announcement that it bought Finland-based Hantro Products Oy, a market-leading provider of video technology for mobile devices. The Hantro acquisition was USD 6m in cash, and approximately USD 40m in stock, based on the volume-weighted average price of On2 shares for the 10 trading days prior to closing.

On2 has a market cap of approximately USD 362m.

Adobe buyout.......
Adobe Systems (NASDAQ: ADBE)
Theres word ADBE will buy ONT. I wouldn't be out of this stock in the near or long term.
This presents a good opportunity to sell into a rumored pps increase for short term profits. Not a short position. This is still trending up.
Lots of optimism about this one.
Acquisitions and accumulations of stock of this company by institutions lately. Good news too. down yesterday up today, but long term this one's a winner.
Expect volatility the next few days as day traders,long players, shorts, aggressive institutions, clash in the battle for shares. A don't miss event.......

* (Strong Buy) 1.0 - 5.0 (Strong Sell)
Mean Recommendation*: 2.0

Support @ $3.53...3.13...2.94
Resistance @ $4.50
52wk Range: 0.55 - 3.98
Volume: 8,369,200
Avg Vol (3m): 4,574,640

Technicals
Most Actives
Percentage Gainer
MACD is Bullish

Last Price Quote is:
21.05%above 13-day MA
62.14%above 50-day MA
RS Rating: 99 

Fundamentals
Key Data:
Market Cap (M): $54.14 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: Buy


If I could post you the chart...on a 4 year chart we have a outstanding
Cup with Handle (continuation) Pattern in the making.
Go take a look at a 4 or even a 5 year chart...Beautiful...

SeekingAlpha
On2's Customer Base Seeing Strong Growth

Notable Calls submits: ThinkEquity is positive on On2 Tech (AMEX: ONT - News) saying their channel checks over the last six weeks instill greater confidence that On2 could outperform firm's 1Q revenue estimate, which they have revised up from $2.36M to $2.45M.


Specifically, takeaways are that On2's existing customer base is seeing better than expected growth in their respective businesses which should translate into higher levels of royalty-based revenue. Firm also believes average deal sizes continued to improve in 1Q. Increased confidence in 1Q trends leads them to believe On2 can achieve non-GAAP profitability this quarter, and as such, causes them to raise price target from $1.70 to $2.10.

Firm reiterates ONT as their top pick. ONT shares currently trade at 26.7x 2008 Non-GAAP diluted EPS estimate of $0.06, relative to its peer group at 24x-35x, and projected 3-year EPS growth of 35%. With a relatively fixed cost structure and growing level of highly profitable, recurring revenue, and most recent checks that indicate On2 should outperform firm's estimates and achieve profitability in 1Q, they have adjusted their forward P/E multiple on ONT from 28x to 35x.

Notablecalls: Expect to see some buy interest in ONT.

ok I was in on 0n2 a little bit ago but sold when it pushed up to 75 on the RSI chart in mid May.  Now the price has went down drastically for the past week.  There's been significant news on the company recently and a nasty "On2 Can't Live Up To The Hype" article by investopedia

Price is now .. sitting 15% lower than it's high almost 2 weeks ago..  anyone think it's a time to buy back in?  I'd prefer $2.50 a share but .. I think it may have hit bottom..

Opinions?

DJPlayer,

ONT is reapproaching a level that may indicate a rebound or further drop.

When the signs of rebound occurs with matching volume increase, I believe many may think the price correction is over and try to buy at bottom, causing a spiking regain.

But if the rebound indications are not there, then ONT may experience further correction.

I believe we'll know what will happen to ONT next week.

I have my buy order at $2.55.............if she fills, I will look for 2 things: 1) nice bounce to $3.00 or 2) get stopped out at $2.25

Either way, she will do a U-turn.........somewhere on the chart........LOL

When she hit 2.57 and then stalled at 2.60...........I almost hesitated, but I figured what the heck, go all in 20k shares at 2.62, then almost immediately she sure ran hard to 2.80 ..............crazy markets.

Jumped out at the close, needed the cash for another trade........this should base for awhile, hopefully its a slow one back up..........will look to get back in.

In at $2.61.  When I woke up it looked like I'd missed a fill by a penny but it came back and picked me up a half hour later.  Bounce to $3.25 maybe?

Quote from: Lucas Scott on June 06, 2007, 03:49:50 AM
In at $2.61.  When I woke up it looked like I'd missed a fill by a penny but it came back and picked me up a half hour later.  Bounce to $3.25 maybe?

Wow, the low was 2.76 today; how did you get in at 2.61? Nice buy. 

I'm in @ 2.83.  Took a small position today, it looked as though it was ready to run at 11:25AM, so I did not want to find myself on the sideline.  I plan to add more on any dips.  A PR could catapult the PPS of this stock.

Cheers,

in @ 2.77.  Noticed it curving back up yesterday and wanted to see if the trend would continue for the 2nd day b4 purchasing.  Market is nasty today.  But ONT lookin good on the bounce back.  Currently ONT up 4% on the day ($2.84) when the entire market (DJ, S&P etc. )is down 1%

I am back in this morning to see if we caught the bottom.

The 3 month RSI 14 chart shows rebound off previous RSI points (just below 50).  If the rebound continues, looking to catch another wave up and sell at next RSI 14 peak of 70-90.   

It is my theory that with ONT having been a very high profile stock recently with tremendous daily volume, once the signs of rebound is expressed, many may jump back in with past gains fresh on their memories.

So the potential for this wave up may be fueled by another feeding frenzy we've seen in previous weeks. 

IMHO

QuoteWow, the low was 2.76 today; how did you get in at 2.61? Nice buy.

Have you ever read Harry Potter? I used a Time Turner

But seriously, my buy was on June 5 when the low was 2.57. I posted after midnight so the date stamp is June 6. ONT was getting down near the 50 ema so I placed an order about 2% above it and got a good price it seems. . I have a GTC sell order at 3.25

No worries today, overall market was down again.  Not a lot of buying interest all around.  The volume was rather low today as well, the 10 day average is currently 6,363,705 and ONT only traded 3,240,671 shares.  Look for a nice move north when the volume picks back up (hopefully tomorrow).

Cheers,