TiVo's deals with Comcast and Cox, which together account for about 50% of the cable television market, could help the company gain a wider subscriber base in the future.
The move to a software-based business model, which will allow TiVo to reach customers that purchase third party DVR boxes, has the potential to expand TiVo's customer base significantly.
Top Contributor: N L | Created when NASDAQ:TIVO was $6.72 | Edit | History
The company delivered solid FQ1 results. In Chicago, Comcast will be deploying the TiVo service over the next few months. Also finished the quarter with over $200 million in cash/investments and no debt. I also expect a favorable ruling in the Echostar litigation case. The trade: Sell 10 Nov09 puts @$5.00 for a premium of .60 ($600.00). Requirement on this trade is approximately $2,400.00. Yearly return is 25%, since this trade expires in less than five months the return is 44%. Should TIVO drop below $5.00 by November 20,2009 cost basis becomes $4.40. Last time TIVO closed under $4.40 was March 14,2005, and under $5.00 was December 1,2008. Although past performance is not indicative of future results these are strong support levels as the following day TIVO bounced back to close at $6.70 on March 15,2005 and $5.36 on December 2,2008.
