Rovi Corporation (NASDAQ:ROVI)

CAPS Rating: 1 out of 5

The Company provides digital lifecycle management solutions, which enable to protect, enhance or distribute software or digital content through digital distribution channels and destination devices.

Results 1 - 19 of 19

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Member Avatar Hendrickson71 (< 20) Submitted: 12/28/2015 1:43:07 PM : Underperform Start Price: $17.81 ROVI Score: -11.65

How is that renewing licenses increase revenue? ITs not that thrie reveniw growth or EPS growth is that greeat to warrant 100% pop

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Member Avatar TSIF (99.96) Submitted: 12/23/2015 11:44:13 AM : Underperform Start Price: $15.60 ROVI Score: -26.22

ROVI Corporation is a little better off than it's "books" might suggest. I look at stocks with large spikes and gauge the news and need for shorts to cover, and before I jump in, I try to see if the company was overvalued, undervalued, or right size BEFORE the spike.

The news on ROVI was the 7 year patent renewal with AT&T. Validation, no competition infringing, etc, are good news, but "renewals" don't necessarily mean an increase in revenue and ROVI is already bleeding. It's hard to value a patent portfolio....someone will inevitably push in with a variant, and court battles start, but ROVI seems to have an integrated, accepted package, and still heavily invests in R&D to maintain leadership.

While licensing agreements overall are high margin, the large R&D outlay and the large SG&A outlay for a company this size results in paper losses. Revenue has been relatively stagnant the last three years with some recent slight declines, so it's not clear if the spending in these areas is paying off.

Cash is still "healthy" based on cash flow, but half of what it was a year ago. Book value with near a Billion in debt and $1.3B in Goodwill is pushing 3/4 Million negative.

High Goodwill is often a sign that you over paid for assets. Eventually it often gets adjusted down, especially in a tech sector.

So paperwise, ROVI doesn't look so good. The "un-papered" patents could eventually be a boost if adopted further by other players in the field and there is some room to bump down SG&A and R&D (within limits) at some point.

I believe ROVI was generally fairly valued before the pop; the "news" is NOT substantial; Shorts got caught and are attenuating the spike as they cover. Daytraders and speculators will eventually reduce the volume.

Generally, it's a bad idea to "pile" on to an equity trending up early in the day. Short covering cycles generally oscillate a stock upward and dips such as I punch in with are generally head fakes. The cycle can last 1-3 days. In this case with the holiday, it might be shorter, so I'll enter. Looking back now, however, only about half the shorts have covered so far, and the stock is heavily institutionally owned, meaning less shares to utilize.

Target: 20 points.

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Member Avatar tiobueno (98.71) Submitted: 9/9/2015 8:02:30 AM : Outperform Start Price: $11.26 ROVI Score: +68.33

Insider

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Member Avatar ScotchAle (< 20) Submitted: 10/30/2013 7:06:41 PM : Outperform Start Price: $17.74 ROVI Score: -2.67

Revenue should increase significantly.

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Member Avatar arlind24 (< 20) Submitted: 4/4/2013 6:24:52 PM : Outperform Start Price: $20.34 ROVI Score: -30.86

Great technicals, improving fundamentals, increasing sales, great outlook.

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Member Avatar Sbparkinson (< 20) Submitted: 1/14/2012 5:37:20 AM : Outperform Start Price: $31.22 ROVI Score: -83.93

This company will be a successful leader in the near future!

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Member Avatar jaylarule (< 20) Submitted: 11/17/2010 5:10:25 PM : Outperform Start Price: $53.95 ROVI Score: -121.16

Short term bounce here.

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Member Avatar EmilZatopek1952 (< 20) Submitted: 11/12/2010 8:49:15 AM : Outperform Start Price: $52.41 ROVI Score: -118.30

Strategic niche in market. Beaten down and coming back nicely. Great growth potential.

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Member Avatar gerena1976 (< 20) Submitted: 10/4/2010 10:23:40 AM : Outperform Start Price: $50.13 ROVI Score: -125.06

http://www.madmoneyfund.blogspot.com/ see why , long term play

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Member Avatar Robear1020 (< 20) Submitted: 8/20/2009 4:05:07 PM : Outperform Start Price: $27.98 ROVI Score: -108.25

Learn a little about Rovi does… click on 'see how >>'

http://www.rovicorp.com/

Review the recent press:

Tivo: http://finance.yahoo.com/news/Rovi-Announces-Data-...
KDG: http://finance.yahoo.com/news/KDG-Joins-Rovis-EPG-...
TNS: http://finance.yahoo.com/news/Rovi-and-TNS-Media-R...
Samsung: http://finance.yahoo.com/news/Rovi-Signs-Interacti...

And the current chart:

http://finance.yahoo.com/echarts?s=ROVI#chart2:sym...

It possible that Rovi is to the set-top-box what Google is to the browser? (An innovative way of catching viewers and grabbing advertising dollars ;-)

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Member Avatar JerryDreamer (< 20) Submitted: 8/2/2009 8:32:32 PM : Underperform Start Price: $25.27 ROVI Score: +114.15

There is less momentum, less volume, and less buying going on. We are in the last part of this rally.

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Member Avatar Paramnesia1930 (31.33) Submitted: 7/31/2009 7:22:42 PM : Underperform Start Price: $25.27 ROVI Score: +114.15

The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).

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Member Avatar TRGoodvsEvil (93.28) Submitted: 7/3/2009 7:32:46 PM : Underperform Start Price: $21.28 ROVI Score: +123.50

This portfolio tracks the performance of good vs. evil companies.

Evil elements:

Many people have no idea who Macrovision is, and still more people confuse Macrovision for Macromedia (Macromedia makes the popular Flash application used in web sites).

Macrovision, for the uninitiated makes their entire business out of robbing consumers out of their fair use rights to make legal copies of media they buy. Ever tried to copy a DVD or VHS movie? Odds are it didn't work because Macrovision technology is there to ensure that it won't.

All of this is done in the name of antipiracy, of course the technologies in use are completely trivial for well financed pirating organizations to get around, the only ones affected by these methods are the consumers who are in almost all cases making a perfectly legal backup copy of a movie so they can safely store the original.

Now many people would blame the companies that use the Macrovision technology for the evil, and certainly they are no angels, but Macrovision is the company that provides the tools, and the tools serve no purpose other than infringing on people rights, so they get my vote.

From http://robert.aitchison.org/tiki-read_article.php?articleId=52

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Member Avatar SolidInvestor (< 20) Submitted: 5/20/2008 5:28:26 PM : Outperform Start Price: $13.59 ROVI Score: -1.68

Too good fundamentals to keep this drop. The bottom is near.

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Member Avatar grecipient (89.12) Submitted: 1/30/2008 1:13:58 AM : Underperform Start Price: $16.56 ROVI Score: +32.52

From an end-user's perspective, DRM is an anti-feature. Customers will reject DRM in the long run.

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Member Avatar SanDieguito (24.51) Submitted: 12/7/2007 9:37:08 AM : Underperform Start Price: $18.76 ROVI Score: +31.37

down $5 to $20

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Member Avatar silentrumble (83.71) Submitted: 11/25/2007 2:47:43 PM : Outperform Start Price: $24.53 ROVI Score: -60.10

As long as content providers want to get compensated for making their products available, rights management will be an on-going concern. MVSN is at the forefront of solutions for all of the various digital distribution routes. As these channels develop, MVSN's profits will increase.

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Member Avatar thePgroup (< 20) Submitted: 10/3/2007 8:02:20 AM : Outperform Start Price: $25.28 ROVI Score: -54.11

EPS estimate increased and settlement with Motorola is in the works.

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Member Avatar JayCurt (57.94) Submitted: 12/11/2006 1:18:53 PM : Outperform Start Price: $28.16 ROVI Score: -73.87

The SEC is happy with them again.

Results 1 - 19 of 19

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