Monday, November 15, 2010

Tune In To Rovi New Age Entertainment

Will Big Investors Tune In And Push Rovi Higher?

By Investors Business Daily

Rovi's (ROVI) products help people find and connect to TV shows, movies and music. Its technology is used by consumer electronics makers, and it also creates program listings for cable TV firms and other carriers. The company was featured in the IBD New America column in June.

* Rovi's sales growth ranged from 13% to 21% during the past four quarters.

* Earnings growth has been stronger and has accelerated, coming in at 67% in the latest report.

* Going forward, analysts see earnings rising 34% in 2010, then cooling to 19% in 2011.

* The stock's Accumulation/Distribution Rating is an A-. That rating tracks buying and selling of the stock among institutional investors. An A or B Rating tells you big investors are buying the stock.

* Rovi has an Up/Down Volume Ratio of 1.4. Like the Acc/Dist Rating, this ratio tracks buying and selling among large investors. A ratio above 1 indicates demand for the stock.

* Mutual funds and hedge funds own about 72% of shares, and the number of funds owning Rovi rose last quarter, from 701 to 705.

Rovi Chart Analysis - Click the Rovi Stock Chart for a Larger View

Rovi Stock Chart
* Since late September, the stock has been forming a flat base (Point 1).

* The buy point is calculated by adding 10 cents to the 53.00 peak in the base (Point 2). That gives you a buy point of 53.10.

* The stock tried to break through that buy point on November 1 (Point 3) and again on November 9 (Point 4), but it couldn't gain traction.

* Although it has made two breakout attempts, you can still use 53.10 as the buy point for the base. Watch to see if Rovi can break through that area of resistance on above average volume.

* Remember: While you want to buy as close to the ideal buy point as possible, a stock is considered within buying range up to 5% above the buy point.

Rovi Stock Checkup

* At 97, Rovi's Composite Rating ranks #1 within its 12-member Computer Software — Education/Media industry group.

* Its EPS Rating of 96 also tops the group, as does its Relative Strength Rating of 92.

* Its SMR Rating of A is 5th among its peers.

* The stock's Acc/Dist Rating of A- comes in at #3.

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