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IPO-DIVX "thing of beauty" by CRAMER: Cramer said he's caught an "overlooked IPO" in DivX (DIVX - news - Cramer's Take). And he believes that the stock, which has increased almost 17% after its IPO, still has a lot of potential to make people money.

DivX is a company that makes software for video compression and decompression and does 18% of its business with Google (GOOG - news - Cramer's Take), Cramer said.

"We love Google and anything connected to Google," he said. "Soon there is going to be a bandwidth shortage, and that's why we believe DivX is sexy."

But that's not the only reason Cramer likes the stock. Sure, DivX may have "hotness potential," but the real reason he likes it is because of its fundamentals.
"I regard the numbers here as a thing of beauty," Cramer said.

DivX has a great business model, with 80% of its business coming from licensing fees. In addition, for 2005, DivX's gross margins were 89%. Additionally, in three straight years, DivX has doubled its revenue, he said.

The company has accelerated revenue growth, Cramer said. People missed getting into this stock because "it's a small company that is off the radar screen," said Cramer, who believes that DivX could be the next Akamai Technologies (AKAM - news - Cramer's Take


http://www.thestreet.com/_tscs/funds/madmoneywrap/10311391_2.html