RE: Sounds a bit expensive...First I want to commend you on the fact that you put a graph into the message because I didn't know you could do that. Second, I want to say that although Dolby is expensive, it is because the success of the stock is priced in, and for the potential results you get out of it I would say it is a pretty safe buy. Dolby has always been on the positive end of the technological market, and not only jumped on, but seems to be driving the bandwagon for new technologies. On top of that, a recent article has stated the following:
' Davenport & Company initiates coverage on Dolby Laboratories (NYSE:
DLB) with a Buy rating and a $50 price target.
The firm said, "We believe that the company's combination of strongtechnology and highly desirable brand make it an irreplaceable partnerfor most any consumer electronics company seeking to attract consumerswith quality audio products. DLB's high margin licensing revenuederived from a variety of consumer electronics applications andgeographically diverse customer base should allow it to outperform itspeers under most economic circumstances. The company has a nice mixtureof mature and emerging revenue streams that offer both stability andgrowth opportunities." '
Although a 10% increase is pretty modest, Dolby has already increased by 6.7% since this upgrade.