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 High: $58.19
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.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts