The real story is always the buyer of the picks and shovels. Those picks and shovels fetch a high price from those who look for Gold.
What is an essential for Digital Entertainment? It is a cheap semiconductor stock called Entropic Communications.
Netflix, Apple, Intel and Wal-Mart are connected to video streaming. Microsoft, Sony, Amazon, Netflix, Blockbuster and Roxio CinemaNow, a division of Sonic Solutions, all offer online movie stores for Internet-connected devices like HDTVs, Blu-ray players or video game consoles. Apple sells movies and TV shows alongside music in its iTunes store. Entropic Communications has more than 70% of a this rapidly growing streaming chip market and just announced shipping more than 50 million chips.
Moca 2 is the newest chip. There is no competition for Moca 2. These FAB chips require a cycle of about 5 years to reproduce. It was recently revealed MoCA 2.0, the new offering, will take on a greener posture along with the speed. One previously undisclosed wrinkle is Turbo. This wrinkle makes Moca 2.0 about 10 times faster than any chip on the market today.
The New York Times is reporting that Walmart has agreed to buy Vudu, a streaming movie rental service. Despite its status as one of the biggest DVD and Blu-ray retailers in the country, Walmart has yet to make any moves into online video--until now. And Walmart (one of Fast Company's 2010 Most Innovative Companies) has the ability to shake up the field more than any other retailer.
The news known is nothing but positive for Entropic in the second half of the year.
Some short-sellers do not play by the rules. A small group of powerful hedge fund managers stop at nothing to annihilate the companies they sell short. Their tactics can include: blackmail, smear campaigns, espionage, fraud, harassment,rumor-mongering, sabotage, off-shore money laundering, and political cronyism. The short position is quite large. For risk takers, that means opportunity. If the shorts are wrong, the stock will spike during the squeeze while the shorts try to get out.