Rovi (ROVI) Marked As A Dead Cat Bounce Stock

Trade-Ideas LLC identified Rovi ( ROVI) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Rovi as such a stock due to the following factors:

  • ROVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
  • ROVI has traded 968,751 shares today.
  • ROVI is up 3.4% today.
  • ROVI was down 9.4% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ROVI with the Ticky from Trade-Ideas. See the FREE profile for ROVI NOW at Trade-Ideas More details on ROVI: Rovi Corporation provides solutions for the discovery and personalization of digital entertainment to service providers and consumer electronics (CE) industry worldwide. Currently there are 4 analysts that rate Rovi a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Rovi has been 1.2 million shares per day over the past 30 days. Rovi has a market cap of $1.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of -0.27 and a short float of 8.1% with 4.31 days to cover. Shares are down 4.1% year-to-date as of the close of trading on Monday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Rovi as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and unimpressive growth in net income. Highlights from the ratings report include:
  • The gross profit margin for ROVI CORP is currently very high, coming in at 80.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -14.91% is in-line with the industry average.
  • ROVI's debt-to-equity ratio of 0.94 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.72 is very high and demonstrates very strong liquidity.
  • The change in net income from the same quarter one year ago has exceeded that of the Software industry average, but is less than that of the S&P 500. The net income has decreased by 14.1% when compared to the same quarter one year ago, dropping from -$15.47 million to -$17.65 million.
  • Net operating cash flow has significantly decreased to -$9.05 million or 134.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.