Dolby Laboratories (DLB) is probably a familiar name to most investors. It is, indeed, the company behind the ubiquitous and eponymous audio technologies found in nearly all consumer electronics that play or record audio content, including PCs, DVD and Blu-ray players, digital music players, home theater receivers, game consoles, and so forth.
Dolby makes the lion's share (about 80%) of revenues from licensing its technologies to software makers and consumer electronics manufacturers. In effect, the company works like any IP patenting firm. Dolby develops and patents its audio technologies, then licenses the technology and the brand name to, for example, Samsung to build their digital televisions and Blu-ray players. Software programs that decode and play Dolby-encoded audio also need to license the technology. [more]
Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, and buying from the resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens used by MagicDiligence: [more]
I write about value-oriented stock investments. My "universe" is the set of stocks screened by Joel Greenblatt's Magic Formula® Investing (MFI) technique, which includes only some of the cheapest stocks in the market against their trailing earnings.
So you can imagine my surprise and intrigue when Apple (AAPL), one of the great growth stories of the 21st century, recently appeared - and stayed - on those screens. [more]