Matthew Dow
Small-cap, value, long only, growth at reasonable price

Rovi Corporation: Despite A Big Run, The Stock Is Still Undervalued

Rovi Corporation (NASDAQ:ROVI) is a developer and licensor of IP products and services needed by companies throughout the digital media entertainment industry. The company has more than 5000 issued and pending patents worldwide which it licenses to numerous service providers and consumer electronics (CE) manufacturers.

After rising to nearly $70/share in early 2011, the company made some poor capital allocations decisions and seemed to overpay for an acquisition. This coupled with a sharp downward revision of its forecast in July 2012 caused the stock to fall considerably, as far down as $10/share by the middle of 2012. New management came on board at the end of 2011 and the company seems much more disciplined; The market has responded...

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