"...An example of Macrovision's, ahem, vision, is its move into the realm of audio CDs. It's a market that's long been considered a lost cause. But the riches to be had if an effective solution can be found are monstrous. Working with TTR Technologies, based in Israel, a hotbed of security technology, Macrovision is already testing its products on “golden ears” studio professionals trained to hear imperfections. Like many of its product lines, there's currently no serious competition in the audio CD protection business.
Over the summer the stock price ran up on optimism about the CD audio protection product, jumping from $35 in April to a high of $108 in late August, before retreating to $96 in mid September. At those levels, the company's market capitalization was an impressive $3.9 billion. Expensive? Of course the stock traded for almost 200 times estimated 2000 earnings of $0.55 per share and sported a price to sales ratio of 81 times trailing 12 month revenue of $48 million..."