DivX shares were slammed by investors after the company disappointed with earnings guidance in their fourth quarter 2007 conference call. However, DivX's revenue growth remains strong and the company has over $140 million in cash. With a market cap of only $230 million, DivX's punishment has been overkill.

The Chinese are addicted to massively multiplayer online role playing games. Giant Interactive fills the role of drug kingpin, as its addictive gaming offerings have resulted in strong earnings and cash flows. Giant's upcoming gaming transition has weighed on the company's stock, but with $1 billion cash and an impressive pipeline, prospects are rosy.