Message Font: Serif | Sans-Serif
No. of Recommendations: 0
A Cheap Stock Going Forward

A company that is coming up on my watchlist daily is TiVo (TIVO), which, together with its subsidiaries, provides software, technology, in-home, and outside-of-the-home cloud-based video solutions, which are included in DVRs, non-DVR set-top boxes. 2012 was a great year for TIVO and together with the company's recent earnings report and upcoming settlement, it seems that TIVO is cheap at these levels.


TIVO's last earnings report showed that the company is making a positive turn. A few years ago, TIVO was having big issues but both fundamentally and technically, the company looks like things are on the mend.


TIVO has also announced success in a patent litigation, the latest being Verizon. Verizon (VZ) agreed to give TIVO a $250m settlement with quarterly payments through 2018. Remember also that Dish Network (DISH) settled for $500m in 2011 and continues to make quarterly payments.

What makes TIVO interesting is the upcoming lawsuit in May against Motorola, now bought by Google (GOOG) and Time Warner Cable (TWC). Janney Capital markets believes these lawsuits can bring in an additional $1B to $2B. A possible takeover by GOOG is also a possibility.


Provided that TIVO continues to grow as we saw in their last quarter, I expect the company to have record earnings in 2013. This would occur as a result of new relationships with US Tier 2/3 providers, new marketing schemes, increased revenue due to settlements and the generation of positive cash flow in 2013. My target is $24 for 2013.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.