|The legacy business is flat. The emerging products I am interested in are growing 100% YoY. The latter will eventually carry the day....if it continues. That is where we are at. I am betting on the new products - Dolby Vision Atmos Cinema.|
After digging deeper and re-listening to the last CC, a little clarity. The legacy business is growing at about 2% on a $1B approx. base. In 2017 they grew 5%, the base 2% plus $30M in the emerging products. They are forecasting 5-8% top line growth in 2018. They corrected an analyst in the Q&A that it was 5-8% up from 5%. This is exactly equal to their forecast of emerging products doubling again from $60M to $120M. 2% legacy plus 6% emerging...poof the 8%. Their goal is to move to double digit top line growth. Continue to move the emerging products line up and they get there in 2019, keep it doubling and they move to a new level.
The chart below shows a steady accumulation of the stock, it didn't move down at all after the earnings and is hitting daily new highs. The volume is average, but frequently spikes at the end of the day, along with the price. Classic accumulation.