Covered Calls

[Joe Stocks]

STV - Yikes! Just noticed they report after the close. My STV buy was actually an add as I have been holding for awhile in other accounts.

Interesting excerpt...

>>>With access to digital programming booming worldwide, particularly in China, providing the technology to control access to it is proving to be a booming business for China Digital TV. It makes the smart cards that go into the set-top boxes, as well as the software that the industry needs to distribute digital programming.

Revenue for the Chinese conditional-access company hit $55.5 million last year, up 82% from the year before, and has grown at a compounded rate in excess of 148% over the past three years. Yet shares plummeted after a brief, meteoric rise following the company's IPO last year. After reaching a peak of $55 a share, shares now trade below $20 a stub. However, with the summer Olympics quickly approaching, demand for access to view programming will be increasing.

CAPS investor MGen thinks China Digital is a mispriced stock right now because of a misconception that it is a "cable company" when, in fact, it has nothing to do with the programming itself:

China Digital TV has consistently beaten earnings expectations ... since the IPO last year, yet ... [it] has seen an overall declining stock price ... through a combination of the overall declining stock market ... plus a popular misconception that STV is a "cable company stock" which should carry a low [price-to-earnings ratio]. China Digital TV's primary product is a high-tech conditional access smartcard ... which recently has even been upgraded by the use of Intel (Nasdaq: INTC) card processors. ... [A] market China Digital is expanding into is a PC card which makes PC's capable of receiving and displaying premium HDTV.... China Digital is a Tech sector company, not a Cable TV Station provider. ... [It] is well-positioned to be a high growth company for at least the next several years.<<

http://www.fool.com/investing/high-growth/2008/05/12/5-stocks-approaching-greatness.aspx