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TiVo (TIVO), an expert in digital-video recording, closed Tuesday's regular session at $9.15. It was up over 1%. Sure, that sounds swell when juxtaposed with Tuesday's market action. It does nothing, however, to make me like the stock.
The 52-week low for the shares is $6.41. The 52-week high is $18.93. The one-year chart is ... not appealing. You've got a big spike in buying interest near the right side, preceded by sideways action. Then, a nasty plunge. How can you possibly comprehend this technical situation? It's difficult at best, and I'm not going to pretend I know where the stock is heading.
Still, there are clues for us to scrutinize. According to Reuters, the company recorded a net loss of 13 cents per share. While that was three pennies better than the analyst call, it still is yet another loss for the business in a series of them. Fundamentally, I believe the thesis is shaky.
Besides the red ink, the Reuters story reminds us of the litigation issue with DISH Network (DISH) over a patent squabble. Also, AT&T (T) and Verizon (VZ) have felt the sting of TiVo's corporate lawyers, as mentioned in this recent article.
As I tally up the pros and cons of this stock, I find I have more cons than pros. Most of them center on the crazy price action. Do I really want this stock in my portfolio during this time period? Speculation can lead to nice pops, but honest assessment of risk trumps gambling any day of the week.
For me, the risk with TiVo is too great. I would prefer to own a content platform, such as Comcast (CMCSA), over a content recorder. So, I'll call this one a pass for now.
Disclosure: I don't own any company mentioned; positions can change without notice.
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