Broadcast Lands Contract, Sees Insider Buying
Broadcast International, Inc. (BCST) may not be as large as DivX, Inc. (DIVX) or On2 Technologies, Inc. (ONT), but the company unique compression technology, new contract awards, and insider purchasing makes it a stock to watch.
Broadcast International, Inc. [[BCST.OB]] may be on the forefront technologically, but its stock price has been rather dormant. The company’s CodecSys technology allows media companies to reduce capacity utilization and lower bandwidth costs by offering superior video compression. In fact, its technology can help lower bandwidth usage by about 80% in many cases.
Video Compression Technology
Video compression is accomplished through so-called codecs, which emphasize certain aspects of a video, or its use, to be encoded. For example, a digital video of a sporting event needs to encode motion well but not necessarily exacting colors, while a video of an art exhibit needs to perform well with colors and surfaces – this creates a problem for videos with multiple scenes.
Broadcast International’s CodecSys technology solves this problem by enabling digital video producers to utilize a variety of codecs while compressing a video by switching codecs on-the-fly based on the scene’s needs. As a result, there has been a great response from customers that are extremely impressed with the dramatic economic advantage of the software.
Quiet New Contracts, Insider Buying
Earlier this month, Broadcast International quietly announced that it entered into a $10.1 million, three-year contract with a Fortune 10 financial institution to provide its technology and digital sinage services to 2,037 of the client’s more than 6,000 retail and administrative locations throughout North America, according to an 8-K filing with the SEC.
Meanwhile, insiders also seem to be quite optimistic in Broadcast International’s future. Director Ray Zobrist purchased a total of 8,525 shares on the open market, at prices ranging from $1.50 to $1.06, between June 18th and July 24th, according to a recent Form 4 filing with the SEC. The $11,316 transaction suggests confidence in the company’s prospects going forward.
Broadcast International seems to be moving along nicely in terms of the development of its technology and recent contract awards. Meanwhile, a large insider purchase signals that the board also remains confident in the future prospects of the company. As a result, this may be a stock to watch for OTC investors looking for a riskier growth stock.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com