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Rovi Partners With Apple

Sep. 20, 2010 11:32 AM ETROVI, AAPL2 Comments
TraderMark profile picture

Sometimes you are hot, sometime you are neutral, and sometimes much of what you are just turns cold.

Last Friday, Rovi (ROVI) broke support intraday and looked in trouble. I've been selling off many of our other positions the past week and a half as they have been running non stop, but this was a name that had not had that big run so it had been still a large position. Then Friday, due to the chart I cut the position down by 55% to reduce risk. It rallied later in the day but only right back to the support/resistance level.

This morning the company announced a golden goose in the current market - a partnership with Apple (AAPL) which sent the stock into the stratosphere. (Click to enlarge)

It has since given back much of that gain in the ensuing hour but it still smarts... you can't do much about these out of the blue announcements either bearish or bullish, but sometimes the market just has your number.

  • Rovi shares are trading sharply higher this morning after the company disclosed in an SEC filing that it has signed “a multi-year agreement” to license intellectual property to Apple. Terms of license “are confidential,” Rovi said.
  • Known as Macrovision Solutions until last year, Rovi provides software for discovery and management of entertainment content, as well as copy-protection technology for media companies.

Frankly this announcement does not say much, but in 1999 all you had to do was announce your company was starting a website and the stock would surge 14% immediately. Now you need to announce your company is (a) part of the cloud or (b) partnering with Apple and you get the same surge.

Disclosure: Long Rovi in fund; no personal position

Original article

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TraderMark profile picture
Mark will be launching a mutual fund summer 2010. He is a self taught private investor who operates the website Fund My Mutual Fund (http://fundmymutualfund.com); a daily mix of market, economic, and stock specific commentary. Fascinated by the market since an early age, he discovered mutual funds as a teenager in the 80s and moved to equities by the mid 90s. The origin of the website is/was to leverage the power of the internet in developing a transparent track record to attract investors for his potential "long/short" mutual fund. His equity focus is identifying secular growth trends and the companies most likely to benefit from these macro trends. Stocks are identified through fundamental analysis, although basic technical analysis is used in determining entry and exit points. You can receive Trader Mark's latest posts daily by subscribing free via RSS reader (http://feeds.feedburner.com/FundMyMutualFund) or subscribing free via email (http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1109639). With a degree in economics from the University of Michigan, a broader understanding of the economy as a whole, along with interpreting investor psychology, is also a major interest for Mark.

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