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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (44984)	10/15/2011 5:07:06 AM
From: J Mako	Respond to of 78614

re: DLB When I said superficial, I meant it. My original thesis was light on the quantitative side. That taught me a lesson... My thinking was: Dolby would be able to penetrate the mobile audio market just like how it penetrated the walkman market. At the same time, corporations have been slow in upgrading to Win7. It's destined to happen. So, I figured that would give Dolby a stable stream of zero cost revenue in near term in the face of decline of DVD player sales. I also convinced myself the I should substrate out its massive cash on the book when I evaluated it. That gave me a rationale to pay a relatively high multiple. All of these are still truth now. But what's lacking is a quantitative anchor for the margin of safety... I'm still hanging onto the stocks.