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Technology Stocks : ONT - On2 Technologies

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To: Tom Caruthers who wrote (16)2/1/2007 1:20:38 AM
From: Tom Caruthers  Read Replies (1) of 43
 
We hit a high of $1.43 right during CES in early January. Currently just shy of $1.20. Lots of positive momentum for this company. Picked up Think Equity as a research firm who think this is one of their best ideas as a convergence play. Brought on a CEO who has focused on revenue generation.

The chart essentially mirrors last year's action during this time (see post #6 - deja vu/frighteningly similar). Although I hate to say that I think it will be different this time, I really believe it will be. The fundamentals have become much more compelling. Video has become so much more prominent and important. And the Adobe Flash/ONT relationship that has put ONT on 95% of computers is extremely powerful. I am expecting ADOBE to buy out ONT. There is a small fortune to be made in video encoding and future royalties associated with potential cell-phone video, XM Satellite video, etc.

And the chart. It's one of those symmetrical triangles that have come to a head. The moment of truth lay just ahead (i.e. within the next week or so) Will we repeat the disappointment of last year or will we shoot ahead? Stay tuned!

Good luck!

Tom
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