TiVo (TIVO)

Company

"Founded in 1997, TiVo pioneered a brand new category of products with the development of the first commercially available digital video recorder (DVR). Sold through leading consumer electronic retailers, TiVo has developed a brand which resonates boldly with consumers as providing a superior television experience. Through agreements with leading satellite and cable providers, TiVo also integrates its DVR service features into the set-top boxes of mass distributors. TiVo's DVR functionality and ease of use, with such features as Season Pass(R) recordings, WishList(R) searches, and TiVo KidZone, have elevated its popularity among consumers and have created a whole new way for viewers to watch television. With a continued investment in its patented technologies, TiVo is revolutionizing the way consumers watch and access home entertainment. Rapidly becoming the focal point of the digital living room, TiVo's DVR is at the center of experiencing new forms of content on the TV, such as broadband delivered video, music and photos. With innovative features such as TiVoToGo(TM) and online scheduling, TiVo is expanding the notion of consumers experiencing 'TiVo, TV your way.'(R) The TiVo(R) service is also at the forefront of providing innovative marketing solutions for the television industry, including the Stop|Watch(TM) commercial and program rankings service, a unique platform for advertisers and media companies." (company website)

TIVO 6-month chart

Buy

3-Sep-08. TiVo beat Expectations handily when it reported earnings in late August, and has been soaring on heavy volume since then. This is the 4th consecutive day of stretching out the upper Bollinger band, and stochastics signal that TIVO is overbought. Nevertheless, volume is still above the rising average daily volume; it is only 6% below the April peak and 8% below the February (52-week) high; and with such momentum I am betting on further increases in price.

• Percentage Price Oscillator (PPO) — diverging sharply after cross-over last week

Based on technical analysis, MarketEdge calls TIVO a "buy" in a "strong upward trend."

Updates

4-Sep-08. Yikes! TIVO continued to rise nicely after yesterday's buy, and when I looked this morning it was up over $9. When I checked in a while later, it was down over $1 and closed at $7.31, way below my purchase price. The sell-off was apparently triggered by the fact that a judge did not deliver an expected ruling. Not that he ruled one way or the other, just that he didn't rule!