Corel and Sonic’s consumer businesses will benefit as the number of PCs with high definition DVD drives increase.
Organic growth between 7~10%
Forward P/E (1yr) under 7
Cons: Limited by debt, possible distruption in its integration of interVideo
High definition versions of Corel’s InterVideo Win DVD playback software also garners roughly a 3x premium and CREL stands to benefit as both read-only and read/write drives are increasingly attached to PCs. WinDVD currently represents around 15% of Corel’s revenues.
$10.52 (03/28/08)
