SMALL CAP FEATURE: On2 Technologies, Inc (ONT)
I know this is a new type of post from me, but I am so excited about this one, I wanted to share it with you. On2 Technologies, Inc (ONT) is a company that creates, patents, and licences video compression technology. Blah, blah, right? Well, not exactly. On2’s primary piece of intellectual property (that it solely developed and owns) is the underlying video compression technology for Flash 8. If you are unaware, Flash 8 is the format of video that nearly all user-generated video sites (YouTube, etc) are using. You see the Flash format increasingly on the tech-forward sites, while Mpeg-4 and Windows Media Player dominate the traditional streaming video on the net. Bottom line- Flash is the future for streaming video and this is the technology that is behind it.
Not convinced? Well, On2 recently announced that this Spring they will be launching software that allows Flash video to be played on mobile devices. The growth rate/potential of video on mobile devices in so incredibly high right now it blows my freakin’ mind.
Forget DivX - if you want to put your money into this sector, the future is with On2.
Disclosure: I have no current position in On2 Technologies, Inc (ONT), but I do plan on purchasing 1000 shares on Tuesday. All recommendations, commentaries and information provided by FivePercentStocks.com, should be researched before making any investment decisions. I am not a professional analyst and do not expect people to make investment decisions based on my postings. Investing in the stock market involves risk and you are the sole bearer of that risk.
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February 20th, 2007 at 12:17 am
250 for me. I see it too. Thanks for the tip.
February 20th, 2007 at 1:23 pm
Nice 5%+ increase midday today
February 20th, 2007 at 8:11 pm
indeed, finished off the day at +7.26%
February 27th, 2007 at 11:05 pm
what is your position on this stock?
February 27th, 2007 at 11:33 pm
Took money off the table right aft the 20th and put it back in at $1.23 - still long
March 8th, 2007 at 4:41 pm
It looks like you’re going to see some sell off on earnings. I am sticking long here because of two main things:
1) 100%+ increase in revenue on 24% decrease in cost of revenue
2) New Revenue generator from mobile compression coming online this year on lower R/D year costs in 2006
I’d like to see R/D rev up at the end of this fiscal year after the company gets into the black to diversify its IP portfolio.
I will stay long pending a strong negative with a ring the register target of around $1.76
March 19th, 2007 at 1:52 pm
I got quite a few emails saying this one would never reach $1.30 again, buy they’ve had a great day today and I am looking forward to a nice return as this thing soars up to near $2.
March 19th, 2007 at 4:24 pm
I held as well. Nice 6% gain today to close @ 1.35.
March 20th, 2007 at 7:44 pm
Disclosure: rang the register for an amount equal to the gains thus far, left the original investment amount in.
March 21st, 2007 at 3:40 pm
im 2280 stocks deep in this company but im looking for long term payouts. Im kinda new into stocks but if adobe buys them wouldnt the stock go down.
March 21st, 2007 at 3:49 pm
NOOOOOOOOOOOOO! It would go up up up…. they’d have to pay a pretty heavy premium right now for this baby
March 21st, 2007 at 4:19 pm
so by them paying a premium for on2 it will make on2 rise. SO when do you think we will se $2
March 21st, 2007 at 4:30 pm
I have no reason to believe that ADBE will buy ONT.
March 21st, 2007 at 4:37 pm
oh i was reading people writing that. So what do you see in the near future
March 21st, 2007 at 4:44 pm
To be honest, while I am following this one, I don’t plan on selling anything but profits up to $1.75 or so, then I’ll look at it closely for short term potential- now I’m only looking long until we hit $1.75
March 27th, 2007 at 1:05 am
Another good day for this stock (+8.67% to 1.63).
March 27th, 2007 at 6:27 am
I’m loving it!
March 30th, 2007 at 4:39 pm
12% gain today.
April 12th, 2007 at 7:34 pm
+11% today. Do you think we’ll see past $2?
April 12th, 2007 at 8:03 pm
$2 is in the bag, the question is $3.
Discl: I cashed out completely at $1.85 for cash flow reasons. Will probably get back in if I see a good entry.
April 13th, 2007 at 2:19 pm
I cashed some shares at 1.72 but I’m still in it. What do you think this momentum is from?
April 14th, 2007 at 4:33 pm
Yes, this is amazing- I hope others bought in, back after the last quarter. I have to believe that the run-up to the introduction and deployment of the mobile technology is a factor here. If ONT can do well there it could fly. Lots of acquisition talk, but I am skeptical of that… helping drive up tho. go Ont!
April 15th, 2007 at 10:14 am
so has ne one heard when they will post there 1quarter finacials. Im hoping that will push it up a bit. Plus all the news about this showcase this week. Im guessing 2.50 by the end of the week.
April 16th, 2007 at 7:36 am
According to the latest Barron’s on Adobe: “Its Flash software dominates close to 99% of user-submitted web video content, as well as online video ads which are growing in triple digits. Even bigger may be the potential growth in mobile video on iPods, cellphones and gadgets. Bulls say shares ($41.64) should hit at least $50 (+20%) within a year.” This could hit $4 if the potential growth on mobile video comes to fruition.
April 16th, 2007 at 11:37 am
man $4 would be nice.
April 17th, 2007 at 4:13 am
I hear that!
April 17th, 2007 at 10:13 am
so this stock just keeps getting good news im not sure when im gonna sell
April 17th, 2007 at 1:23 pm
How will the announcement of Adobe bringing in Onstream (direct competitor of On2) to its Flash Media Solutions Group affect On2. Is this announcement yesterday a problem or do they do different things. On2 was not part of the 5 companies Adobe is giving a lift to. I thought of investing in On2 but now am unsure. On2 is still up today but…
April 17th, 2007 at 1:55 pm
My understanding (pending anyone’s correction) is that On2 one of technological advancement, behind the scenes compression work, and that OnStream is more of a business services company in this field. I do not know of any proprietary technologies that OnStream has that competes directly with On2.
April 18th, 2007 at 9:05 am
With the large volume going through at the end of the day yesterday and some further shakeout today, I would wait for a new entry point or hold long.
April 18th, 2007 at 11:49 am
It looks like ill be working the hold long
April 18th, 2007 at 2:16 pm
I’m holding long for the previous 52 week high or higher.
April 18th, 2007 at 8:04 pm
So does ne one have any geusses of when they will post their 1quarter finacials
April 19th, 2007 at 9:10 am
No but I bailed out today.
April 19th, 2007 at 12:41 pm
so has ne one else bailed out yet i thought about it today
May 10th, 2007 at 9:38 am
So glad i didnt bail!!
May 10th, 2007 at 8:48 pm
I bought back in and bailed again today at 2.31.
May 15th, 2007 at 3:03 pm
looks like i screwed the pooch on this one.
May 16th, 2007 at 2:24 pm
Me too- I saw plenty of good entry points after earnings. Just wasn’t focused enough on it to purchase. This was a year maker here. Hope people kept in this one, tripled since first post.
May 17th, 2007 at 1:30 am
I got back in today and made out okay. I’m going to ride the dips and see if I can’t make some extra cash. If anyone else has any thoughts on ONT, please post.
May 23rd, 2007 at 8:52 am
yea on2
May 24th, 2007 at 4:11 am
On2 Technologies an Adobe takeout target, sources say
http://www.ft.com/cms/s/d5269c32-08b3-11dc-b11e-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html
May 24th, 2007 at 8:24 am
I’m not convinced that Adobe will sweep up ONT. I am very happy about the acquisition of Hantro - it shows a real commitment to this mobile space and opens up growth potential to $10 for this stock, in my opinion. Also, on Adobe, why give away stock to Hantro if you have any inclination a buy-out is pending. It’d be like paying double for Hantro, because a buy out of ONT will cost $8, at least.
I still have no position, but have two purchase points (one lower and one higher) set to get back in.
Go ONT!
May 24th, 2007 at 10:03 am
I went with my gut on this one and bought more at 3.46 today. I’m confident that this comapny will continue to grow. If ADBE picks up ONT, it will be awesome. Stay tuned!
May 24th, 2007 at 2:44 pm
I crept in at $3.40
May 25th, 2007 at 8:40 pm
i knew you’d be back
May 26th, 2007 at 5:40 pm
[...] SMALL CAP FEATURE: NutraCea (OTCBB: NTRZ) It’s been a while since my lone "small cap feature" post, but I recently received a proxy voting form and annual report from NutraCea and I wanted to share the stock with you all. A few things first. I have to give myself props for the previous small cap post on On2 Technologies (AMEX: ONT). I recommended it prior to its March earnings announcement at around $1.24. It ended up selling off and I reaffirmed my strong bullish opinion on the stock. It currently sits at $3.42 and has been as high as $3.99 not too long ago (note: I did move out early of the stock, but you can see that if you follow the lengthy comments thread). In any event, the lone On2 post has been such a strong driver of traffic to the site that I am eager to post on NutraCea. [...]
May 28th, 2007 at 7:15 pm
You may have seen the recent article “On2 Can’t Live Up To The Hype (ONT)”
For some reason Mark Whistler pens a headline that has nothing to do with what his article is about. Yes we know ONT is expensive, yes we know you’re probably chasing at $3.75, but he never tackles any real reasons why the valuation is unattainable. In fact, other then spouting off some current revenue numbers (that we all can read ourselves), he offers no real analysis of the growth prospects of each of the different parts of the business, not to mention the mobile video compression end which has recorded $0 thus far. Basically this article could have been written from a news story on the acquisition and a 1-yr chart.
http://research.investopedia.com/news/IA/2007/On2_Cant_Live_Up_To_The_Hype_ONT.aspx
June 4th, 2007 at 2:18 pm
Note: I doubled down at $2.75
June 5th, 2007 at 12:36 am
I’m still in at 3.46 and going long.
June 15th, 2007 at 8:17 pm
Today was a good day for ONT. It looks like it is about to make a run again real soon. I’m guessing the addition to the Russell list has some impact on institutional buying of ONT from what I understand.
http://www.russell.com/indexes/membership/US/Reconstitution/Recon_3000_Additions.asp
June 18th, 2007 at 10:47 pm
[...] A few readers wrote to me asking about additions to the Russell 3000, finalized next week. Russell did put out a preliminary list on June 15, which I embedded here for your review. Thanks to Brad, my ONT buddy, for bringing this topic up.Russell 3000 Additions as of June 15, 2007 [...]
June 20th, 2007 at 3:26 pm
no problem!