Rovi Sees a Nice Breakout
Rovi (ROVI) is seeing a nice breakout move today with a good amount of volume and a relative strength index confirming the move. I would like to see a stronger move in the stochastics, but momentum is still on the upswing with plenty of room to move.
ROVI announced its intent to sell its entertainment store unit, which is not viewed as part of its core business. During the announcement ROVI provided guidance in line to slightly better than expectations, which puts the stock with a P/E around 8 based on 2012 anticipated results of $2.05 to $2.10 per share. ROVI has had its stumbles, but the valuation here is still appealing. Furthermore, there is very large call volume in the February 17.5 calls, which is where I am heading buying at $0.90 or better with a target at $0.85. I believe some of that call volume was a buy stock, sell-the-call, but is still a bullish look at the stock....269 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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