Diamonds and Dogs
7/18/12Rovi Corp. (ROVI)
Rovi Corp. last nearly half of its value today, dropping 43.29% to $10.01. The provider of digital entertainment guides tumbled the most since its initial public offering, in 1997, after cutting its annual sales forecast amid delays in adding new patent licensees. The company projected full-year revenue to be around $680 million, compared with a prior forecast of $785 million. Rovi CEO Tom Carson said, "In addition, certain other deals with first time licensees are simply taking longer to close than anticipated." The company lost $7.64 today, dropped well below its previous 52-week low of $17.20, and showed one of the largest losses of the day.
VMWare Inc. (VMW)
VMWare Inc. is wearing green today, up 12.11% at $90.01. The company is shaking up its executive structure, moving its CEO Paul Maritz to chief strategist of EMC (company that is the mother ship of VMW), and hiring EMC's president Pat Gelsinger in his place. This move is a lateral move for both companies but shakes them up and provides each company to benefit from new ideas. Both men have considerable experience, Maritz is a former VP from Microsoft with tons of software expertise, while Gelsinger's resume includes three decades at hardware king Intel. Along with the positive move in management, VMWare is expected to have a good earnings report. The average estimate of analysts is for profit of 47 cents per share, a rise of 6.8% from the company's actual earnings for the same quarter a year ago. Good news equals a positive move in the share price.