Dolby blows away estimates, raised guidance, increased share repurchase plan and the shares get a big haircut for their efforts? Stupid. Hold while Mr. Market adjusts his meds. I suggest doubling the dose of lithium. Yikes.
Agreed. Few people seem to understand how streamlined the profits have become with Dolby over the years. Manufacturing costs are gone, ditto for outsource license protection. High margins, low maintenance. Surprised they aren't offering a modest dividend.
Just discussing this with a co-worker. We're thinking it's as simple as profit-taking. The stock hit an all-time high earlier this week and has been declining since. It's natural for some people to take profits and then buy back in at a lower price point. I'm expecting a rather strong recovery in share price over the next couple of trading periods.