DIVX market cap is at 30x its gross revenue

Discussion in 'Stocks' started by ByLoSellHi, Sep 29, 2006.

  1. Okay, I'm going to wait before I start shorting the bejeezus out of it, because the chart shows it has to room to run.

    But as of now, it is a 33 million dollar gross revenue business with nearly a billion dollar market cap.

    I want to personally thank Jim Cramer for another fantastic future short play.
  2. You'll get a better short entry, he's pumping it like crazy again today.
  3. I have one word for you guys, REDF. When Cramer states that he believes a stock is the next Google, then you see this kind of crazy climb.

    Before you start shorting or buying into DIVX, look at REDF. You can see where Cramer started pumping it in the beginning of the year and where it is today.

    Bottomline, whenever Cramer states that a stock is the next Google watch out;) Its hard to say where the top or bottom of this thing is. What we do know is that its not going to stay at the current levels. Eventually, there will be one big dump just like REDF. I say chart and monitor it and short when there is an obvious downside.

    Dont try to fade this thing...
  4. Cramer is the next Livermore.

  5. qll


    i would rather long this stock.
    if you can not calculate the growth, then either stay away to join the crowd.
  6. With the advent of cheap broadband and cheap storage, I don't think we'll be needing much of Divx. Plus, if they really had a good product going, it will probably be a target for takeover.

    My point of view though is this may run a little bit but when market starts tumbling, this thing will be single digits in the blink of an eye. I wouldn't be afraid to start scaling in short positions at this level.
  7. I think your right.

    Anyone else think so?
  8. Picorian


    Divx is a decent company, but we all know part of the boost is just because of cramer. Any idea where the top will be?
  9. Actually, I don't think fast broadband and storage has got much to do with it. You still need video encoders. Without some sort of compression, the bandwidth/storage requirements would be mind boggling. And transcoding to something suitable for mobile devices is likely to be around for quite a while.

    If anything, bandwidth and storage just increases the market size for digital video.

    Which of course has little to do with the future prospects for the stock price.