Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technology specialist Dolby Laboratories
With that in mind, let's take a closer look at Dolby's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Francisco (1965)|
|Market Cap||$3.53 billion|
|Trailing-12-Month Revenue||$939.5 million|
CEO Kevin Yeaman (since 2009)
CFO Murray Demo (since 2009)
|Return on Equity (Average, Past 3 Years)||19.7%|
|Cash/Debt||$903.7 million / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 4,001 who have rated Dolby believe the stock will outperform the S&P 500 going forward. These bulls include troym72 and All-Star TSIF, who is ranked in the top 0.1% of our community.
The 18% drop due to the announcement that Dolby technology is not in the current working version of Windows 8 is totally overblown. Even if DLB loses the Microsoft revenue, they are still worth more than the current trading price. Thumps up Dolby!
Dolby even boasts a robust three-year average operating margin of 47%. That's much higher than that of rivals DTS (26.7%), Sony (1.3%), and SRS Labs (4.8%).
CAPS All-Star TSIF elaborates on the Dolby bull case:
[T]here is nothing in the history that tells us that they are subject to a double dip recession anymore than anyone else. In actuality, they have proven they can ride through it. Dolby is an innovator and even in a recession there are some things consumers will stretch for. ...
So, for me, it's a chance to get a piece of an innovator, solid cash producer, at a bargain price. If things don't go optimal for Windows 8 in the next two years I'll see if Dolby makes up for some of it with the PC makers. If not, I still have a cash machine buying back its shares. I fully believe that market sell-offs have no mentality in choosing their victims; the market in these cases is extremely inefficient. The more I can leverage the inefficiencies the less risk I will have during further panic.
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