Money Making Online

We think that there is a good opportunity in the NASDAQ market buying a cheap stock with big potential: Avid Technology, Inc. (NASDAQ:AVID)

We will track the stock performance in the next days. But we think this is the moment to buy *

Although reported revenues of $239.0 million for the three-month period ended December 31, 2006 compared to $245.0 million for the same period in 2005, a strong demand around the world (Europe, for example) for the digital audio & video, makes us think this company will have a big appraisement in the value of its stock this year.

This is the summary for this company:

Avid Technology, Inc.
http://www.avid.com/

Avid Technology, Inc. (Avid) develops, markets, sells and supports a range of software and hardware for digital media production, management and distribution. Digital media are video, audio or graphic elements in which the image, sound or picture is recorded and stored in digital values, as opposed to analog or tape-based signals. Avid’s products are used worldwide in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; advertising agencies; government and educational institutions; corporate communication departments, and game developers and Internet professionals. The Company’s business is organized and operated in three reportable segments: Professional Film, Video and Broadcast; Audio, and Consumer Video. In August 2006, Avid acquired Sibelius Software Ltd. (More from Finance Google)

Businesswire.com publish:

“As we look back at our performance in Q4, and the full year of 2006, it’s clear that our results were mixed. While our big deal backlog continued to build each quarter throughout the year, including Q4, bringing us to record levels, recognizing revenue out of this backlog continued to be unpredictable. This led to a shortfall in our video business for the fourth quarter,” said David Krall, Avid’s president and chief executive officer. “Our audio business recovered nicely from the slowdown in demand that we saw in Q3 for Digidesign’s Pro Tools|HD® systems, allowing a strong finish for the year. In consumer, we had lower than expected results for the year as the business was slow to recover from the product quality problems with the Studio 10 software. We took an impairment charge in the fourth quarter to reflect the decline in the fair value of the consumer business unit. Nevertheless, we believe that the product quality problems are now behind us, and are pleased that we achieved higher-than expected consumer revenues in Q4 based on strong demand in Europe. We have taken a number of steps to position all of our businesses more favorably for the coming year, including a cost restructuring in our consumer business which took place in Q4. Graham Sharp, our new general manager for our video division, has already implemented a number of changes that are intended to improve the segment’s operations. However, we do not expect the full benefits of these efforts to be realized immediately.”

Businessweek.com publish:

“The company said revenue from its video business fell short of expectations, but that the audio business recovered from a third-quarter slowdown.”

Marketwatch.com publish:

“Fourth-quarter 2006 results include a noncash charge of $53 million for the impairment of goodwill associated with the acquisition of Pinnacle Systems in August 2005. Excluding items, Avid earned 54 cents a share.”

Nancy Gondo published a technical commentary about Spotting The Buy Point, and put Avid Technology as an example for her. We don’t agree totally with her, but it is good that you see several points of view.

Ok, for us this is a great opportunity. We will see. Current price in the moment (February 03) is $ 34,99

* This have informational purposes, not trading purposes or advice

Do you remember when the Internet bubble exploded in 2000? Yes, maybe you remember.

That were a crazy time when many people including chefs, drivers and policemen, were spending their savings and gambling their retirement funds in Stock Market. People who didn’t know anything about Stock Market thought they would be rich in a short time with the most crazy companies in the world: the dot-com companies. These companies had not any earnings, but people felt that spending your money in those would be a great idea. And the brokers and the investment firms seemed to feel the same thing.

Why? Why people were investing frantically in companies without earnings? Well, the answer is simple: euphoria. The “big mass” is always manipulated by media. And media is a good soldier for the real winners in the stock market. In that time, you could hear news, articles and opinions about the big revolution dot-com and how many people in the world were winning a lot of money with some simple websites and obtaining the money from investors even if the web-project was really crazy. And people read the Wall Street Journal, they watched TV, heard their broker or trader and then they were feeling the pressure and a little voice in your head: “Hey, will you lost this big chance to obtain easy money? Come on, give your money to your broker and feel the sound of cash going to your bank account.” Easy money? Get me a break!

Easy money is not a general concept. Instead of that, to obtain money is easy if you have the knowledge. Investing Stock Market is the same. Again, if you don’t know nothing about the stock market, maybe you want to give your money to an investment firm and they could win something for you, but believe me, “something” means a low return in most cases. The investment firms use a simple philosophy: diversification. They diversify your money in many investments so they can minimize the risk: if a market is low, maybe the other market is high. So, they have an average profit but maybe this profit is better than your bank account return.

But the real winners don’t have average profits. Sure, they lose money sometimes but in many cases they have extraordinary profits because they have two powerful tools: knowledge and access to good information. When the chefs, drivers and policemen are entering to market because of diffused euphoria by media, the real winners start to sell positions and apply their “exit strategies”. The real winners look for opportunities when stock market is weak, not when all people is buying.

Warren Buffet, one of the most honorable investors, say that the most stupid reason for buying stocks is because all people is buying the same stocks. If the life were so easy, we would be living with Alicia in the wonderful land.

The point is, if you like the stock market matter, please: first at all invest to learn about that. Learn, learn, learn. To invest your money by yourself without to have knowledge is like buying a lottery ticket. On the other hand, to invest your money in stock market by a good investment firm is like opening a bank account with a “big” profit, but probably the bank could go to bankruptcy sometime and your money could be lost.

If your choice is give your money to a good investment firm, think about this: your money will be managed by an employee in most cases, not by a real investor, so don’t wait an extraordinary profit.

Now, if you think you are ready for investing by yourself, try to answer these questions:

- Do you really know how the stock market is working?
- Do you have additional information which is not known by the “big mass”?
- Are you ready for losing the money and that will not affect the food in your home?

If the answer is no, get me a break!