1-Star Stocks Poised to Plunge: TiVo?
Jul 23rd 2012 12:29PM
Updated Jul 23rd 2012 12:32PM
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital video recorder company TiVo (NAS: TIVO) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at TiVo's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Alviso, Calif. (1997)|
|Market Cap||$1.0 billion|
|Trailing-12-Month Revenue||$260.2 million|
|Management||CEO Thomas Rogers (since 2005)
CFO Anna Brunelle (since 2008)
|Return on Equity (average, past 3 years)||(3.5%)|
|Cash/Debt||$567.3 million / $172.5 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 23% of the 1,084 members who have rated TiVo believe the stock will underperform the S&P 500 going forward.
Negative PE. This was a great idea and great technology when it originally came out, but many of the cable, TV & satellite companies offer similar services. So they have to cut costs, which means the growth & innovation will slow down, yielding lower revenues and potentially more losses. It's a vicious cycle and will be difficult to escape unless they can come up with another great idea or technology. Or they get bought out.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft. The Motley Fool has sold shares of Sony short. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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