3SOF

Bought @ $7.28 for the portfolio

oversold imo 

DIVX stopped @ $6.50

Quick Analysis:

Our last trade on DIVX had a very tight stop, and we're wiped out because of just 10 ticks... 
Fundamentals remain solid despite the poor general environment, Technicals are improving with DIVX already above its 50-ema and with a recent breakout. We're trying to jump into DIVX on the next throwback.

Standby Trading Plan:
Buy DIVX below $8.50

Bought DIVX @ $8.32 for the Portfolio.

Update:

We've bought DIVX yesterday during the expected throwback at $8.32, we're not setting the stop right away, but we'll probably set one near 7.50/7.75 soon.

Trading Plan:
Hold DIVX

Update:

A positive reaction on the area we're waiting for. DIVX reacted positively on the short term support area and 50-ema, it will probably need to consolidate this 8.25/9.00 area, but we're definitively looking for an upside breakout.

We're setting a stop level on this trade:

Trading Plan:
Hold DIVX with stop @ $7.50

Update:

DIVX kept trading at the same level, still above the short term ascending support and the 50-ema.

Trading Plan:
Hold DIVX with stop @ $7.50

DIVX has acting in parallel to the market 

Funai Blu-ray Player Achieves DivX Certification(TM)
Tuesday , September 02, 2008 08:00ET

SAN DIEGO & DAITO CITY, Japan, Sep 02, 2008 (BUSINESS WIRE) -- DivX, Inc. (NASDAQ:DIVX), a digital media company, and Funai Electric Co. today announced the DivX Certification(TM) of a new Blu-ray player from Funai. The player will be launched in the European market in October.

With DivX Certification, Funai's new Blu-ray player, the B1-M110, is capable of seamlessly playing back high-quality DivX(R) video. DivX technology enables a premium visual experience in digital video while considerably reducing its file size. The B1-M110 will allow consumers to play back DivX video that has been burned to DVDs and CDs. Funai's newest Blu-ray player expands the DivX ecosystem within the Blu-ray device category and joins over 100 million other DivX Certified(R) devices shipped by DivX licensees into the market including digital televisions, mobile phones, digital cameras, personal media players and set-top boxes.

"Consumers are increasingly turning to next generation solutions for their home entertainment and there has been continual demand from them to support the playback of DivX video in the living room," said Moriyasu Yoshitake, General Manager, DVD Product Planning Department, Funai Electric. "Working with DivX has allowed us to provide our customers with a high-quality solution for digital video."

"DivX has become a standard feature in the DVD category and our increasing traction within Blu-ray devices speaks to our continued mission of enabling a high-quality media experience across any device," said Patrice Lagrange, Senior Vice President, Products, DivX, Inc. "Consumers have demanded a premium experience for their digital video entertainment and the DivX Certified B1-M110 delivers."

Products that bear the DivX Certified(R) logo have undergone a rigorous testing program to ensure a high-quality DivX media experience, including reliable video playback, interoperability with other DivX Certified devices and the visual quality users expect from DivX.

Update:

DIVX had a first move towards our direction confirming the existence of a short term resistance near $9.20 and before that confirming the 50-ema working as a support. The main bullish layout continues in place, now forming a possible ascending triangle for short term.
The 50-ema stands at 8.40 and the 200-ema at 10.15.

Current consensus estimates shows EPS of 0.56 for 2008 and 0.66 for 2009, which makes DIVX to trade at just 13 times earnings (09FY), while most of its peers trade around 30. Most of recent research notes, show a solid trend regarding estimates upgrades after DIVX showed once again numbers above expected in a difficult business environment. This gives us some potential and backup for upside moves, at least from a Fundamental approach.

I'm raising the stop level a bit and set a minimum target in place, so the current trading plan is:

Trading Plan:
Sell DIVX above $10 with stop @ $7.99

DIVX was stopped last Friday @ $7.99 during the intraday market sell-off.

just a chart update