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Saturday, October 2, 2010

Does Rovi have what it takes? (ROVI)

Rovi Corporation (NASDAQ:ROVI) has been the center of attention ever since investors began to view the stock as a potential takeover target in mid September, causing the stock to rise sharply. The stock has gained almost 16% in September and 57.42% for the year, but can the uptrend continue? Rovi experienced a modest 0.5% pullback as of the close on Friday. It is currently trading above its 50 day and 200 day moving averages.

Rovi offers embedded solutions that integrate into its customers’ products and services which are used by end consumers. Rovi offers a host of technologies including interactive program guides, embedded licensing technologies such as search capability, media recognition technologies, and licensing of its database of descriptive information about television, movies, music, books, and game content. Their television services sparked interest as Apple made it clear that it was moving into the TV business with the launch of Apple TV.

“I feel like I’ve missed most of the move,” said legendary portfolio manager and co-CEO of The Markets Are Open, Allan Edwards. “But I like that the company has what Apple may want."

Rovi has a $460M cash position on their balance sheet and a 19.5% 5-year growth rate.”

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