Should TiVo’s Stock Still Turn You On?

With shares of TiVo (NASDAQ:TIVO) trading at around $12.10 is TIVO an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Results for Q3 were good, but did you read between the lines? A $78.4 million portion of a $250 settlement from Verizon (NYSE:VZ) helped a great deal. This is after TiVo received a $500 million settlement from Dish Network (NASDAQ:DISH) last year. So, we’re not exactly talking about organic growth here. TiVo is currently relying on patents as leverage with cable and satellite companies. That’s great for the near term, but what’s the long-term game plan? In addition to that, management has projected a loss for Q4.

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Analysts seem to love this stock. 14 analysts have given a Buy recommendation, one has given a Hold recommendation, and there are no Sell recommendations. On the other hand, there are many people who don’t agree with the analysts. These are the shorts. The short percentage of the float is 15.50%, which is very high.

This isn’t enough information to determine whether or not TiVo is a good investment right now. Let’s take a look at some other numbers.