Covered Calls

[Joe Stocks]

STV - Long @ 23.80. Sold the MAR 25's for 1.40. 5.9% return if the stock price stays here 28 days from now. Downside protection to 22.40. 22.5's would be a safer bet. Sell the call for 2.60. Gives you a 5.5% return if taken out at 22.50. Downside protection to 21.20. Many of these China stocks have been taken down to compelling values. This one grew revs 100%+ and has a forward pE of near 20.

China Digital TV Announces Unaudited Fourth Quarter and Full Year 2007 Results
http://biz.yahoo.com/prnews/080221/cnth023.html?.v=19

Highlights for Fourth Quarter 2007
-- Total revenues in the fourth quarter were US$19.7 million, an increase
of 102.4% from the corresponding period in 2006 and 36.4% from the
third quarter of 2007.
-- Net income for the fourth quarter increased to US$12.9 million, an
increase of 235.4% from the corresponding period in 2006 and 46.5% from
the third quarter of 2007.
-- Basic earnings per ADS (each ADS represents one ordinary share) were
US$0.23.
-- China Digital TV shipped 2.6 million smart cards during the fourth
quarter, an increase of 37.6% from the third quarter of 2007.<<

From one of the professors today at Minyanville.com

"Take note of China Digital TV (STV) which posted 4Q earnings above analyst expectations.

Also of note is that market share increased as well, rising more than six points. As stated yesterday, the stock is wrestling with near resistance on the 50 day. I think any minor change in market sentiment to a more positive tone would put a much more favorable light stocks like STV as beat and raise quarters are becoming somewhat scarce lately.

I'm a buyer on any material market related weakness. "