Comments on: Investors may be ON2 something (ONT)

By: Google to buy On2 Technologies (Amex:ONT) | Microcap Speculator — microcapspeculator.net

Mon, 02 Nov 2009 12:49:57 +0000

[...] I liked the technology, ONT stock price just seemed too rich to me. I [...]

By: Boult

Boult — Fri, 20 Jul 2007 12:48:40 +0000

No one has mentioned the past 7 consecitive quarters of over 20% rev. growth and with next quarters numbers comming out in the next couple weeks im sure it will read “ON2 Technologies post 8th consecitive quarter with over 20% growth as revs grow 46% from last Q”

By: MS

MS — Mon, 16 Jul 2007 05:15:58 +0000

@John: thanks for the heads up, and for your kind words.

By: John

John — Mon, 16 Jul 2007 05:13:45 +0000

Just a note. Your column is posted to the ONT Yahoo MB. A very heated discussion on there. This stock is a very small part of my investment, but is one of the most interesting. I enjoyed your column, very well balanced.

By: MS

MS — Mon, 16 Jul 2007 05:07:11 +0000

@John: I have no plans on shorting ONT. I think there is enough of a probability that the longs are correct that this one could be very dangerous on the short side. I will probably watch this one from the sidelines, and play it if at all on the long side using technical breakouts for my entries.

By: John

John — Mon, 16 Jul 2007 05:00:59 +0000

You mentioned you’ve shorted similer stocks before. Is ONT a stock you would short? and why or why not? I’m holding for long term ,but talk to people who are shorting.

By: MS

MS — Mon, 16 Jul 2007 04:58:59 +0000

@Russ: you are correct — I didn’t include either potential revenues or share dilution from the Hantro acquisition in my back-of-the-envelope p/s calculation. Including both would lower the ratio, but it would still be high relative to DivX.

@Sep: I don’t consider the stock a sell and am not shorting it myself. I’m not buying it either. At any rate, I highly doubt Schwab agrees with me. Schwab generates ratings based on a computer model without human input, as I understand it.

Thanks for your comments.

By: sep

sep — Mon, 16 Jul 2007 03:54:59 +0000

why is company and its pumpers so secretive about why its former ceo was fired, whether or not he had done what whole foods ceo did regarding posting on message board/chat rooms about his company, and whether any ongoing investigations continue?
Also, Schwab apparently agrees with the writer’s assessment, having downgraded ont tonight from C (hold) to D (sell)

By: Russ

Russ — Mon, 16 Jul 2007 03:42:18 +0000

You’re not including the proposed purchase of Hantro ($12M in Revenues) and what the NEW company will mean to the video space (embedded chipsets) and ONT’s position in this market.

By: MS

MS — Mon, 16 Jul 2007 01:54:51 +0000

Dominic,
Thanks for the comment. I agree that that the ON2 codec is likely to grow rapidly in 2008. I would expect revenue to grow considerably as well. But the current market cap. suggests exponential growth, and I am not so sure about that. What are your revenue expectations for 2008, and how do you think the company gets there? Stay interactive.