Love this company and this stock but curious this run-up the past several days. Anyone has any views on why? Is it in anticipation of better than expected earnings given the view that holiday sales will be OK after all? Is it something else??? I've always thought this company would be a brilliant take over candidate for the right suitor. Any views?
Hah - thought so - got the Motley Fool email and scrolled down to the end loking for the name, but guessed it was Dolby. When Dolby figures out how to unlock their IP for the mass market in a big way, they could get a big run up - but I don't see them doing it.
MSFT announced "“Exceptional demand for Windows 7". Not sure if there was any news of that in the media in time to account for this jump. Earnings were announced too late but there might have been some channel check data or something else that telegraphed their strong recent demand.
That's the first thing that came to my mind.
DLB gets licensing revenue for several versions of Windows 7 and it also is a barometer for PC sales which would also benefit DLB in the form of other licensing revenue from other PC components
as I'm sure you've heard before, in the short term, the market simply does what it does.
But among possible explanations may be realization that Dolby's % royalties from Blu-Ray disc/player sales is MUCH higher than it's % royalties from dvd sales. As Blu-Ray prices have come down, they are seeing wider adoption and purchasing, which means more money in the bank.
Also, we are starting to see more adoption of Dolby 3-d and digital content delivery systems to theaters.
Or it could simply be an anomaly, or people could simply be flocking to a stock that is both tech oriented and yet relatively low volatility, lots of cash, and has shrugged off the bad economy.