Dolby Laboratories, Inc. (DLB)

tenamaxtli (58.75) Submitted: 2/02/08 9:13 PM : Start Price: $19.21 DLB Score: 117.32

Dolby the company has some classic characteristics to catch a potential investor's eyes. The most basic one comes from Peter Lynch; when you see something all around you, it may be part of a stock to investigate. When I go into a movie theater, I always check the sound systems. Most of the ones I see have the Dolby label. Check the back of your DVDs; most of mine have a Dolby tag. You may not see the tag, but just about every TV sold in the U.S. has Dolby technology in it. Dolby is just about everywhere high-quality sound is found.

Another classic sign for this company is how the company collects its revenues. Every movie made and every paid viewing, whether in a theater, on a purchased DVD, or through some rental channel represents collected revenue for Dolby. The company does not have to physically produce something for each sale; it's their technology. It's the picks and shovels of the 21st century, the beauty of intellectual property sold again and again and again. Watch the net margins for this company.

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