Rovi (ROVI - Get Report) is a technology company specializing in solutions for delivering media. The stock trades an average of 4.8 million shares per day, giving the company a marketcap of $1.3 billion.
52 Week Low: $10.01
Book Value: $15.41 The trailing 12-month price-to-earnings ratio is 7.9, the mean fiscal-year estimate price-to-earnings ratio is 5.19, based on earnings of $1.93 per share this year. In the last month the stock has fallen -54.06%, and the average analyst target price for ROVI is $22.10. Management has provided an improvement of year-over-year revenue. Revenue reported was $541.49 million last fiscal year compared to $483.91 million in the previous year. The bottom line has rising earnings year-over-year of $212.88 million last fiscal year compared to $-52.95 million in the previous year. Short interest is relatively low at 2.74% and indicates smart money is not pouncing on the shares. Rovi is beginning to work off a major gap down. Top and bottom lines numbers have not impressed investors. Rovi is a chap oversold stock that has the ability to move much higher but I will focus on profiting from option premium. Rovi is oversold on the charts and is climbing out of a very large gap down in price. The best way I have found for playing oversold stocks is to write put options. Writing put options lowers positional risk and compensates for both time and favorable directional movements. I expect Rovi to take a lot of time to move higher. Selling put options will pay us for waiting. I like the August $10 put this week during the next few days for 25 cents or greater. My profit target is 20 cents or close out on option expiration date.