LC

I couldn't find a topic on Dolby so I thought I would put it out there: -Currently priced at 12-13x earnings ($35/sh on $2.75 eps) -Have increased revenue annually since my data begins in 2002. However revenue increased just 4% from '10 to '11 - the lowest annual revenue increase so far. Does this indicate end of the growth phase? -Excellent margins: ~85% gross margin and ~30% net margin -Nice balance sheet: excellent current ratio, no long-term debt, very low debt-to-capital ratio. -There is a small portion of controlling interest but it is small and doesn't seem concerning. Looks to me like a great company with excellent intangibles (Dolby Surround Sound), no debt, great margins. My only concern is whether they can maintain revenue.

How will they return anything to shareholders if their stock price stays depressed and they are unable to raise dividends over $.01 until their warrants expire?

it's hard to argue with a stock trading at less than current assets. my concern is whether management decides to burn through those assets pursuing IQstream. however i think this is unlikely for two reasons: (1) as mentioned in the article, management has historically had an aprox 15mil burn rate and (2) the wireless data market is an expanding market. i plan on doing more in depth analysis this weekend, will report back monday!