3SOF

Cramer pumped it today but I think it has awsome technology. This got ipo'ed  this week and is around 18. We might see upgrades coming soon and the stock might appreciate a lot. Its in my watch list


DivX is a video codec created by DivX, Inc. (formerly DivXNetworks, Inc.), which has become popular due to its ability to compress lengthy video segments into small sizes while maintaining relatively high visual quality. DivX uses lossy MPEG-4 Part 2 compression, where quality is balanced against file size for utility. It is one of several codecs commonly associated with ripping, where audio and video multimedia are transferred to a hard disk and transcoded.

Profile: DivX, Inc. creates products and services designed for media applications. It offers a video compression-decompression software library, or codec, which is a set of software libraries that plugs into video software applications and allows users to create and play DivX videos through its Web site, DivX.com. The company also provides DivX Player, a software application that plays video content created using various versions of the DivX video technology, as well as allows users to process video downloads, manage video collections, and activate DivX certified devices; DivX Web Player, a software plug-in that interfaces with Web browsers and allows DivX video to be embedded and played within Web pages; and DivX Pro video codec, which offers additional encoding tools.
Further, the company licenses its technologies to consumer hardware device manufacturers and certifies their products to ensure the interoperable support of DivX-encoded content. It markets its technologies to a range of semiconductor manufacturers, ODMs, OEMs, and software developers worldwide.
Website: http://www.divxnetworks.com
Market Cap: ~640M

Trading Idea:
** This is not a technical Play **

DIVX recent IPO brings to the market one of the top high growing technologies of recent times, after the MP3 revolution for music, the DivX revolution is still happening, bringing outside computers movies in high definition formats the same way the mp3 is now part of peoples habits.

Most movies fans used to buy a lot of DVDs during the 90s, and since 3/4 years ago they started to download DIVX movies instead, and playing it on their Home Theatre set with new DVD Players that include the DivX certifications such this one (this one is like a top expensive player, but you can buy a DVD/DivX Player under $35 on any store, and they all have something in common: they pay licensing fees to DIVX for their DivX certification stamp). 

DIVX has a deal with Google, and it has a lot of other revenues from other sources, but the main base for 80% of their revenues is Licensing their technologies to hardware manufactures (75% of their revenues are outside America, so this is really a global phenomenon).

Heres an interesting research abou DIVX:
- An In-Depth Look at DivX's IPO
   
Probably a traditional approach will consider DIVX already overpriced, but taking into consideration the potential of the DivX revolution, and that almost every DVD player around the world will need to be DivX certified in order to sell, the potential I see here is HUGE.

Looking into some competitors, such as the Apple Ipod gadgets that are able to play videos, I see them as new potential DivX costumers (just remembering that I was going to buy a new Ipod and decided not to do that just because it was not DivX compatible )

Cramer:
«Unfortunately» Cramer posted a bullish article about DIVX after the bell, and the stock was up +9% in the after hours. This will increase our entry price on this stock, but at the same time it could work as a first catalyser and bring attentions into DIVX.

Since the stock has no Technical history yet, this trade represents some risk because we can't trust on TA here, the short term fluctuations of DIVX are not easily predictable, but I really believe this could be a long term multi bag play.

Trading Plan:
Buy DIVX during today's session (the stock will probably open with a Gap up above $19.00 / $19.50)

Ramsburg,

Glad you like it. Iam getting in before the analysts. 

Got in a bit late at 20.4, but it was nice to watch the stock race up there after it broke out in the last 15 minutes!

Power move

Good pick, applause

Smaller position @ 20.19... let's do this.

Update:
Nice run for DIVX
Yesterday the volume was really high, almost beating the first trading day after the IPO. We're not setting any stop or exit price yet, so the trading plan will just be:

Trading Plan:
Hold DIVX

Regards,

Nice pick, Ramsburg!
In at $20.2 as well. Hope to offset the decline in AMD and TRID...

Quote from: Terliso on September 28, 2006, 12:12:28 AM
Good pick, applause

Applause again, I really like this pick this could go up to $30 easily

Another very good day but the close was a little shaky.  Any trading plan Ramsburg?

in a little late at 21.75

But were looking hot!

Check out this product "Best ever DivX compatibility with KISS"

Nice feature: Ethernet/Wireless Connection

http://www.kiss-technology.com/?p=dp150408&v=users

Thanks Terliso,

This one is really showing great strength.

Quote from: berloga on September 28, 2006, 08:23:31 AM
Nice pick, Ramsburg!
In at $20.2 as well. Hope to offset the decline in AMD and TRID...

Nice offset

Quote from: dwest718 on September 28, 2006, 06:31:06 PM
Another very good day but the close was a little shaky. Any trading plan Ramsburg?

My plan will be just to hold it now, we can't do much with the TA front, and the base for this pick is just a (very) strong opinion about this technology and market.
I bought a lot of DIVX also for my private portfolio, and part of it (like 60%) will be a long term investment for me, I'll be an official bag holder (different plans for the 3SOF position).
This could be a «wild» ride, and by «wild» I mean both ways because I don't want to be out of this position for the short term, so anybody uncomfortable with this should lock some (or all) of this short term profit and decrease the risk.

Quote from: fous on September 28, 2006, 08:06:26 PM
in a little late at 21.75

But were looking hot!

I guess Paris Hilton would say the same.. Hot

Quote from: Terliso on September 28, 2006, 08:30:34 PM
Check out this product "Best ever DivX compatibility with KISS"

Nice feature: Ethernet/Wireless Connection

http://www.kiss-technology.com/?p=dp150408&v=users

Hehehe Terliso... if you like these Kiss players, checkout the one I bought for my office:
http://www.kiss-technology.com/?p=600en&v=users

Cool hein ?

I bought my first Kiss player in 2003, the Kiss DP500, and I was fascinated by its concept, I loved the DivX quality and I started to think about a play on Divx back then... unfortunately DivX was not a public company yet ... at that time I thought Kiss would be also a great play, but unfortunately it was not a public company either... a few time ago, Kiss was acquired by Cisco (Linksys Division)...
Powerful concept here... probably the future of home cinema / entertainment (at least in Europe, we feel this DivX revolution on a considerable scale already).

Update:
Another solid session for DIVX, with a little intraday resistance at $24... DIVX is for sure catching some major attentions now
I cant honestly predict the short term here, but I'm quite bullish.

Trading Plan:
Hold DIVX

Best regards,